• Bitcoin
    $10025.70
    -0.42
  • Ethereum
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    -1.73
  • XRP
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    -3.78
  • Bitcoin Cash
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  • Litecoin
    $72.54
    -2.29
  • Tether
    $1.00
    -0.04

Types of Cryptocurrency Wallet | Name of Digital Wallet | Examples and Details

Well, you must know the basic concept of blockchain technology, is growing fastly and contagious in the digital market. Moreover, it is attracting users and more and more investors also.

If you are one of the investor or user then it is very common to face issue regarding which cryptocurrency wallet you must choose. As well as, the options are increasing in the market available for your coins and tokens; the security issue is also increasing.

It has become very critical to choose the right mix of performance, security, and convenience digital wallet. Well, if you are one of them then this article will be helpful for you. Here, we are telling you about the cryptocurrency wallet, name of a digital wallet. Along with this, you will also get some examples of the digital wallet here!!!

Do You Know What Digital Wallet Is?
A digital wallet has another name also e-wallet is a virtual storage of user’s payment and identification information for various payment systems. It enables users to purchase process on dedicated services and can also be used together with mobile payment systems.

What Is The Requirement Of Bitcoin Wallet?
Bitcoin is the most, unlike traditional currency in a digital world. It is also known as digital currency completely different that stores in a digital wallet. As, bitcoins have not any shape or form, so, it is not possible to store them technically anywhere.
Instead of this, if you want to the transaction via bitcoin then you would require your bitcoin address and password to access private keys of your bitcoins to make possible transaction securely.

Types Of Crypto Currency Wallets:

Here, we are telling you the names of the digital wallet. There are 6 types of a digital wallet that we are discussing below. Those, who want to know types of wallet, are advised to read out the content given below.

Paper Wallet:

A paper wallet is an important document includes a public address that helps to receive Bitcoins and a private key. With the help of bitcoins and private key, you can spend or transfer Bitcoins stored at that address. The paper wallets are in printed form so that you can easily scan them and add the keys to a software wallet to make a transaction.
If you want to generate paper wallet then BitAddress or Bitcoin paper wallet are the services that allow creating a completely random Bitcoin address and a private key to it. The generated document can be in any form such as printed, tamper-resistant design or even an option of ordering holographic labels, and it is ready for use. It is very important to understand that you are typing very secretive and mandatory information on a piece of paper. So, it is required to keep paper safely. You can laminate it, and storing it in a safe, a deposit box or entrusting it with a solicitor.

Advantages:

  • Essentially hacker-proof
  • Not stored on a computer or mobile
  • Not stored on a third-party server

Disadvantages:

  • Not user-friendly for none-geeks
  • Harder to use for day-to-day transactions
  • They can catch fire

Physical Wallet:

Physical bitcoin are those in which you have to spend fixed amount of BTC in advance. The intension behind of spending is that its value cannot be spent as long as the private key remains hidden. It is normally achieved through implementation of a tamper-evident seal.
At the very first stage, bitbill was shaped liked a credit card. But round shaped medal were found. After that, the cryptocurrency enthusiast “Mike Cadwell” nicknamed ‘Casascius’ created the very first most popular physical bitcoin in 2011.
There was a peelable hologram under which private keys were hidden. After removing private keys, a temper-evident pattern was left behind it. After redeeming, the coin lost its digital worth. Since then, there were many new physical coins manufactured.

Advantages:

  • Very convenient to store funds more safely
  • Can be extremely useful when trading offline
  • Recently become a prized collector’s item

Disadvantages:

  • BTC is still a legal grey area in a lot of countries
  • Money transfer is unbearable
  • Sales of items containing digital coins was stopped

Mobile Wallet:

Those users who are very active on using of bitcoins on daily basis, mobile wallets are very useful for them. They are not required to carry bitcoins along with them to buy goods and product from any shop.
Mobile wallets are run as an app on your smartphone, storing your private keys and allowing you to pay for things directly from your phone. a Moreover, some apps enable users to use their smartphones’ near-field communication feature, which means they can simply tap their phone against the reader, without having to provide any information at all.
Well, mobile wallet is the most convenient solution for the users but it is very easy to hack for users. Once, hackers get data of your device then it would be more easy to hack your bitcoins. Apple banned Bitcoin wallets from the AppStore in February 2014, but reversed its decision several months later.

 

Name Operating system Features
FreeWallet iOS, Android Cold storage, withdraw from and to any cryptocurrency
Edge iOS, Android Zero-knowledge, single sign-on, one-touch 2 factor authentication
Atomic Wallet iOS, Android Very user-friendly, 500+ assets, instant exchange, buy crypto option, custody-free app.
Blockchain Wallet iOS, Android Hierarchical deterministic, enable to browse Bitcoin merchants in your area, open source software
Copay iOS, Android, Windows Mobile Can have multiple users, so the group approves each transaction to send money, open source software
Jaxx iOS, Android Cold storage, no verification required
Mycelium iOS, Android ?old storage, hierarchical deterministic, open source software

 

Advantages:

  • Can be safer than online wallets
  • Conveniently use on the go
  • Offer additional features such as QR code scanning

Disadvantages:

  • Risk of losing your crypto assets if your phone is lost or damaged
  • Risk of mobile viruses and malware

Web Wallet:

With the help of web wallets, users may access funds from any device connected to the internet. These wallets store your private keys only on those servers of company that provides such services.
The servers are continuously access through internet to keep online to be controlled by someone else. There are many services provided by companies includes several features such as linking to mobile and desktop wallets, replicating your addresses across the devices you own.
If any user want to access their funds from anywhere from any device then mobile wallets, e-wallets enable their users only connected to internet connection. But if you haven’t implemented correctly then it may be possible to get full control on your wallet by the organizations running the website.

Service Features
Coinbase One-stop solution, an exchange integrated with a wallet.
Circle Users can store, send, receive and buy Bitcoins.
Blockchain One of the most popular web-based wallets.
Strongcoin Offers a hybrid wallet, which lets you encrypt your private address keys before sending them to its servers.
Xapo A simple Bitcoin wallet, with the added security of a cold-storage vault.

 

Advantages:

  • Enable fast transactions
  • May be able to manage multiple cryptocurrencies
  • Conveniently use on the go and for active trading

Disadvantages:

  • Risk of online security such as hacks and scams
  • Risk of personal protection such as computer viruses
  • A third-party is storing your cryptos, not you

Desktop Wallet:

Those who are trading small amount of bitcoin from their computers, desktop wallet are a great solution for them. Desktop wallet are installed and downloaded on your computer to store private keys on your hard drive.
It is the best and secure option for users in comparison to mobile wallet, as they don’t rely on third parties for their data and are harder to steal. They are still connected to the Internet, which makes them inherently insecure.
There is a variety of different options of desktop wallets that cater for different needs. Some focus on security, some on anonymity and so on.

Name Operating system Features
Electrum Mac OS, Windows, Linux It is one of the most famous, robust and safe desktop wallet. Moreover, it allows you to replace a transaction fee on an already broadcasted transaction, which speeds up the confirmation process; address tagging; encryption; open source.
Atomic Wallet Mac OS, Windows, Linux One of the most popular crypto wallets. Atomic is available for Mac OS, Windows and Linux, 500+ assets, keys are encrypted on your device, instant exchange, buy crypto option, custody-free app, 24/7 help center.
Exodus Mac OS, Windows, Linux Very user-friendly and easy to understand, reliable wallet.
Bitcoin Mac OS, Full node wallet, if you want to use it then you will be
Core Windows, Linux Required to download entire blockchain. It allows you to independently verify transactions and not rely on anyone else in the system.
Copay Mac OS, Windows, Linux Multisignature wallet; mobile and desktop; open source.
Armory Mac OS, Windows, Linux, Ubuntu, RaspberriPi Prioritizes safety and security; features a variety of encryption and cold-storage options.

 

Advantages:

  • A convenient choice for those who trade cryptos from their computers
  • Your private keys are not stored on a third-party server
  • If your computer has never been connected to the Internet, it can be extremely safe

Disadvantages:

  • Harder to use your crypto-assets on the go.
  • If connected to the Internet, it turns into a less secure hot wallet.
  • If you don’t back up your computer and it dies, you lose your cryptos.

Hardware Wallet:

A hardware wallet is a unique and most safe bitcoin wallet in comparison of any other digital wallet. It stores your private keys in a secure hardware device. It is one of the most secure wallets to store any amount of bitcoins in which there are no chances of stealing your bitcoins from a hardware wallet.
Moreover, hardware wallets contains screen also which adds one more security to secure your money. Once, bitcoins are stored in hardware wallet cannot be transfer to any other wallet. So, as long as you invest in an authentic device made by a trustworthy and competent manufacturer with a good reputation, your funds will be safe and secure.

Name Price Features
Ledger Nano S 58 € Screen; two buttons that you need to press simultaneously to confirm a transaction, which prevents hackers from hacking into it and confirming payments; PIN code; box ships with an anti-tampering seal.
TREZOR $99 Screen; two buttons; wallet can be backed up with up to 24 words + passphrase; PIN code.
KeepKey $99 Screen; digital screen and metal body; PIN code; number randomization; can be backed with up to 24 words; recovery can be done with Chrome extension.

Advantages:

  • One of the safest crypto wallet options.
  • Great for storing large amounts of cryptocurrencies that you don’t want to use on a day-to-day basis.

Disadvantages:

  • Most expensive type of wallet.
  • Not as user-friendly especially for beginners, but an absolute must for large crypto amounts.

Digital Wallet Security:

This is very important to secure your bitcoins and it all depends on your security policies of digital wallet. You have to pay some attention towards several aspects given below.

Hot or cold wallet

Hot wallets are those which connected to the internet. These online wallets run with the internet connection and desktop wallets. Cold wallets may be defined as a wallet without an internet connection such as hardware device or a paper wallet. These wallets are offline having no internet connection.
When you store your bitcoins in cold storage then it means that you can access them offline. However, we advise you to don’t store all your bitcoins in cold or hot storage only. A healthy balance between the two is keeping the long-term funds in a cold wallet and ready to use funds in a hot one.

Anonymity:

Most of the digital wallets are not connected to your ID so it’s theoretically possible to trace you back via your wallet data. You should know that blockchain technology use public ledgers, bits of public data help to identify your identity. Well, it is not an easy task, it requires lot of experience and well strategies. Thus, cryptocurrency wallets are called pseudo-anonymous, which further can be translated to “very close to anonymous”.

Security Level Depends On the Wallet:

There are all coins and tokens wallets designed secure and safely but the way security policies applied varies significantly. Using user name and password is known as primary security. But instead of primary security, you must enable two-factor authentication (if possible), use trustworthy wallets and encrypt your wallet for extra safety. Besides that, make sure to:

Update Your Software Regularly:

Always make sure that you are using updated software for your digital wallet. It enables you to using most secure and up to date security policies.

Backup Your Wallet:

Creating several copies at the time of transaction of software wallet can protect your worst scenario — losing your fortunes to software or hardware failure.

Try To Avoid Keeping Your Assets In Exchanges:

If you think Coinbase, Bittrex or Polonex are the most convenient option to keep your funds then ask to them who are playing this game since years. They will tell you it’s hazardous to keep your funds there. In the history of bitcoin, there are several examples where exchanges have been closed, hacked or just disappeared never to be heard from again. And the most interesting part is that many banks are not legally bound to compensate their users, therefore choosing an exchange platform with an excellent reputation is of paramount importance.

Use A Different Browser To Access Your Online Wallet:

If anybody wants to steal your wallet access information then browser extension malware is the best option. So, before left, make sure to clean your browser to access your online portfolios if you want to reduce chances of theft.

Keep Your Keys Protected:

Always keep your keys safe. If you lose your keys every by accident then you will loose your investment forever.

Which Cryptocurrency Wallet is the Best?

There are many cryptocurrency wallets available and every wallet has its own spatiality. It is not an easy job to pick any one of them. But, before go for any digital wallet; consider some of these main points mentioned below:

  • Which cryptocurrencies do you trade? Bitcoin or altcoins? How diversified is your portfolio?
  • Ask yourself are you a short-term or a long-term trader?
  • How secure are your trading tools and devices and what is the security record of your considered wallet?
  • What are the wallets associated costs?
  • Is the wallet UI intuitive and user-friendly?
  • How mobile and accessible is your wallet? Is it difficult to keep and easy to lose?
  • Does it allow you to make quick purchases or sell-offs whenever needed? What is its latency?
List of Digital Wallets:

If you are looking for digital wallets name or confused about which cryptocurrency wallet you must pick then go through the name below. These are safe and reliable in different situations.

Single Currency Wallets:

Official currency’s wallet always is a good option. Here are the official wallets of major cryptocurrencies:

Bitcoin: Bitcoin Core Wallet, Mycelium or Electrum.
Ethereum: Ethereum Wallet or MyEtherWallet (Paper Wallet).
Litecoin: Litecoin-QT.
Dash: Dash Core.
NEO: Neon Wallet, NEO-CLI, NEO-GUI.
Most of the time, official wallets are easy to find on the company’s website.

Multicurrency Wallets (Software):

Jaxx Wallet

It is an optimal crypto wallet software that offers both mobile and desktop applications. You can use it to store your Bitcoin, Bitcoin Cash Ethereum, Ethereum Classic, Litecoin, Dash, Zcash and dozens of other cryptocurrencies.

Coinomi

It is one of the best mobile wallets in the market supports 64 cryptocurrencies. The only downside is that at the moment it currently works with Android only.

Exodus

If you want to store Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, OmiseGo, Qtum, Dash, Bat, Aragorn and many other coins then go with Exodus which is a solid desktop wallet that enable you to store all of these.

Hardware wallets

It is one of the most expensive wallet but as well as one of the safest option for crypto investors.

KeepKey

Supports Bitcoin, Ehtereum and majority of other altcoins.

Ledger Blue

Supports Bitcoin, Ethereum and majority of other altcoins.

Trezor

Supports Bitcoin, Litecoin, DASH, Zcash, Bitcoin Cash, Ethereum, Ethereum Classic and other ERC-20 Tokens.

Digital Bitbox

Supports Bitcoin, Ethereum, Ethereum Classic and other ERC-20 tokens

Conclusion

Dear visitors, we hope that you have learnt all important points regarding cryptocurrency wallet. But still, if you have any confusion then you are absolutely free to ask it in comment box below given. We will try to solve it ASAP!!!

Shailly Kashyap

I am a freelance blockchain writer. Having 4 years of experience in blockchain industry, I have written many articles and blogs on cryptocurrency. My goal is to work with dedication, deliver accurate and transparent information that helps to companies and users to grow.

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