24% of Americans say they don’t understand how cryptocurrencies work; they don’t know how Bitcoin wallets work either.
If you’re thinking of investing in cryptos, then it’s important that you have a firm grasp of both. Otherwise, you might make bad financial decisions, and can even get your valuable investments stolen.
To keep your coins safe, you should definitely get a crypto wallet.
Keep reading to see what types of crypto wallets are available so you can get the ones that are right for your needs.
Hot Wallets
Most people get hot wallets since they’re connected to the internet. This makes it easier to move cryptocurrencies, although it makes things less secure too.
Here are the types of hot wallets you can get.
Web Wallets
Web wallets are extremely convenient since you don’t need to download anything to access your cryptos. You just have to type in the web address, enter your credentials, and you’re in!
The downside to this is if the site goes under, then you’ll lose your investments. The same goes for if a hacker gets through the site.
Desktop Wallets
Desktop wallets are more secure since you download an application that goes on your device. This puts you more in control of your crypto, as you won’t rely on a site to hold the currencies for you.
However, you’re in charge of your own security. If you aren’t careful and download malware, your investments can be stolen. Also, if your device gets damaged, then your coins are lost forever.
Mobile Wallets
These are similar to desktop wallets. As the name suggests, you install an app on your phone, which enables you to trade cryptos while on the go, such as at various BTC ATM locations.
This type of crypto wallet comes with the same risks as the ones above. Physical damage and malware pose a threat to your investments.
Cold Wallets
Cold wallets are the most secure wallets since they aren’t connected to the internet. This means there’s zero risk of losing your cryptos due to hackers. But it can be a hassle to move your coins.
Below are the two main types of cold wallets.
Paper Wallets
What you see is what you get: all your information is written down on pieces of paper. This makes it immensely difficult for someone to steal your cryptos, as they’ll need these sheets.
However, the main drawback is if your papers are ruined or lost, you can’t recover your coins. It’s also time-consuming to make transactions.
Hardware Wallets
It’s better to opt for a hardware wallet, especially since you can get a decent one for around $100 to $200.
These look like flash drives and store your private keys. Even if yours is connected to the internet, you can trust that your keys won’t leave your hardware wallet.
Choose From These Types of Crypto Wallets
By knowing the types of crypto wallets available, you can pick the right ones to protect your investments.
You can even mix and match hot and cold wallets to get maximum security!
So don’t be afraid to use more than one digital wallet, as it’s better to be safe than to be sorry. You’ll be able to rest easy knowing your coins are secure.
Now that you know more about storing Bitcoin and other cryptos securely, keep reading our blog page for more on these digital currencies.