Cryptocurrency has been making waves and getting popular not only in the financial market but across industries for a good reason. After all, they can be used anytime and anywhere. Most importantly though, they’re currently the most secure mode of payment available thanks to blockchain technology.
Cryptocurrencies are also not regulated by banks or the government so you’ll have full control of your account and no longer rely on third parties, resulting in lower fees and faster transactions. All in all, these make using cryptocurrencies all the more appealing.
But before you can buy cryptocurrencies, you need to have a wallet where you can safely store, receive and send them. There are two kinds of wallets you can use for cryptocurrencies: a software wallet and a hardware wallet. Find out more about them here at Casino Days.
Software wallets are computer programs or apps that you can open on your devices to store, send and receive crypto. There are also different variations of a software wallet, namely:
Mobile wallets – Mobile wallets are the easiest, most used and convenient software wallet for cryptocurrencies. You can download a crypto wallet app from your phone’s app store. Once you have it downloaded, you need to create an account with a username and password or a PIN. Once you’ve done that, you can then enter your private key and public address and access your funds.
However, there are a few factors you need to consider before trusting a mobile wallet.Since they’re connected to the internet, it can be flawed and there’s also a possibility of hacking. So, always make sure to take extra precautions with this type of wallet.
Desktop wallet – Desktop wallets are software installed on your computer or laptop, where you can monitor and control your cryptocurrencies.
Wallets are where you store your private key and public address which you need to make transactions. Since your wallet is stored on your computer, it might not be as convenient to bring it out compared to using other types of wallets. As a software wallet on your laptop, it’s also susceptible to hacker attacks, since your device connects to the internet.
However, if the software stores data offline on your hard drive, then it’s secure from online attacks and only you can access your funds. You can also increase the security of your devices through antivirus and anti-malware software.
Web wallets – Web wallets are considered the least secured of all the wallets. Since you need to go to a specific website to access your cryptocurrency, it means you’re always connected to the internet, which makes it the most susceptible to hacker attacks.
Using web wallets means that you’re storing your cryptocurrencies in a cryptocurrency exchange. Instead of you having your private key, the exchange will keep it for you so you can access your account on the net. However, this also means that if the exchange gets shut down or hacked, you won’t have access to your funds.
This is also why most people recommend storing your cryptocurrencies in a hardware wallet, which is considered the most secure way to do so. But if you really need to use a web wallet, it’s recommended to use non-hosted ones where you control your private key or PIN so you can have absolute control of your funds.
Unlike software wallets, hardware wallets are physical devices where you can store the info for your cryptocurrency. They’re considered to be the most secure type of wallet as they are seldom connected to the internet, lessening the chances of hackers accessing them.
One of the most important aspects of hardware wallets is their security. Even if hackers do get a hold of your hardware wallet, they need a PIN code that only you know of. If they try to enter the PIN unsuccessfully several times, the details of your account will vanish, keeping your cryptocurrency safe.
If you have another wallet and you still have the seed phrase, you should be able to still access your funds without any issues.
There are two kinds of hardware wallets available. Take a look at the different variations below:
Paper wallets – This is one of the first kinds of hardware wallets and the only secure way to properly store cryptocurrencies since no electronic device is needed. Being an offline wallet, it’s one of the most secure ways to store your cryptocurrencies, however, it does have its flaws.
For one, it’s a bit technical and requires users to have extra caution when handling or storing their paper wallets. To make one, you will need to go to a wallet generator online to generate your public and private keys.
Once you have them, you need to go offline and print the wallet containing your details. Take note though, that it’s just a piece of paper where your private keys and public address are printed out for easier access.
Device wallets – These are small, flash drive-like devices built specifically to handle private keys and public addresses of your cryptocurrencies. This way, you only need to plug in your wallet to a device to make or receive payments.
It may require native desktop apps to set up the wallet but once you do, you’re good to go. Despite having to connect the device to a computer, your private key and PIN are shown and stored only on the hardware wallet. This means that even if you plug it into an infected device, your info is not in any danger of being extracted.
Keep your cryptocurrency safe!
Keeping your cryptocurrency safe should be your priority once you’ve obtained some. Here at Casino Days, we want to help you choose the wallet that’s right for you. Whether you store them in a software wallet or hardware wallet to keep them safe is up to you, but remember to consider their pros and cons when choosing which one to use!