Types Of HD Wallets In Cryptocurrencies

Types Of HD Wallets In Cryptocurrencies

 

In your daily activities, you may have used digital wallets basically known as e-wallets through smartphones. Similarly, there are various types of cryptocurrency wallets depending on our needs.

 

Online Wallets

An online wallet is termed to be known as a web wallet which easily allows you to access your cryptocurrency via the internet. However, there is a wide range of advantages only by using it for a small number of cryptocurrencies. The main advantage of such online wallet is that it enables fast transactions and can manage multiple accounts at the same time however there is only risk that it can be hacked online by a third party.

 

Mobile Wallets

These wallets are basically available on your cell phone through an app just like Google pay, you can use mobile wallets when purchasing in physical stores. The basic advantage of this wallet is that it can be safer than an online wallet and it offers additional features such as QR code scanning. The only risk is that you should not lose your phone else wallet can be misused at any point in time.

 

Desktop Wallet

When safety matters a lot to you this wallet is perfect as you can download the desktop wallet on your computer as they are not always connected to the internet. If a computer has not been connected to the internet then this wallet turns out to be a cold wallet. If connected to the internet all the time then it may become less secure also known as a hot wallet. Click here to know more.

 

Hardware Wallets

This can be most secured one of all the wallets out there as they store the private key in a device as you are still able to make online transactions. It is the best wallet to store a large number of cryptocurrencies that you don’t use on a daily basis yet most expensive of all.

 

Paper Wallets

It is a super cold wallet so as to use you will have to print out your private and public keys. It is generally hack-proof as it is not being stored on any computer or phone; hence no third party is involved. Typically, you may find it hard to use for daily purposes.