There are never-ending discussions on social media platforms about Bitcoin and other cryptocurrencies, and why not, when you find so many tweets and videos from celebrities and videos by online influencers. All this has aroused the interest of millions of people worldwide. With so much content available to read and hear, people now have a fair idea about the concept of this digital currency. If you are looking for integral info beyond just the fundamentals, this might be the post you have been looking for lately. After gaining knowledge about what’s of Bitcoin, it is now time to learn about crypto wallets.
Wallets are important for a seamless trading experience. You might or might have not yet heard the terms software and hardware wallets. If these words seem vague or confused about picking one of them, reading on will help to get the informative details on this subject.
What is a crypto wallet?
Do you have a purse to keep your hard cash, plastic money, and other stamps? It is a physical and tangible wallet that has been in use for ages to store the typical fiat currency. Crypto wallet performs the same job of storing money because it is meant for digital/ cryptocurrency only. As an investor in this form of currency, a person will come across two wallets- cold and hot. Some prefer the former type, while others are on the side of the latter type. It is on you to decide which wallet is suitable for you. However, before making that decision, it becomes sensible and essential to know the difference between them.
About hardware wallet
Do not get into any turmoil upon seeing the word hardware at some places and cold at others; they are both same. These wallets are tangible, which means that they are physical devices that contain the private key to your crypto account. In short, these are offline wallets for Bitcoin, Ethereum, etc. If you choose this wallet, then you must also know its pros and cons to see if it is a suitable wallet for you or not.
- Pros- Only the person has the physical device, and its pin would access the contained info. People prefer hardware/ cold wallets because they keep their crypto from online hacking hazards. Another highlight of this type is that there is no third party’s intrusion or involvement, thus offering you wholesome independence throughout.
- Cons- Inconvenience is the biggest downside that prevents people from choosing this wallet. It is not as easy to access as a hot wallet; thus, it is a little less user-friendly. The price of a cold or hardware wallet can be one of the reasons to avoid it. However, users find it worthy of paying a little extra here with so many safety protocols.
About software wallet
Also called hot wallets, these are opposite to hardware wallets for having no physical element. As the name suggests, these are online mechanisms/ applications used for crypto storage. There is no connecting device but just an online portal from where you can take your crypto transaction ahead. Know the benefits and downsides of using this wallet.
- Pros- People nowadays look for ease of usage, and everybody is switching to online modes for sheer convenience. Thus, umpteen crypto investors rely on software/ hot wallets for being instantly fast. You only need internet access to execute or store digital currency here. There is no need to look for a computer to connect the wallet, otherwise needed in a hardware wallet.
- Cons- Being an online mechanism, hot wallets might bring hacking concerns. However, one can easily do away with this issue by signing up with a promising reliable software wallet provider. Also, practice safe browsing habits like never clicking suspicious links and avoiding unreliable software wallet hosts.
Wrapping it up !!!
You must choose a secured and promising platform like blockchain technology to ensure a sound crypto tradimg experience. All transactions are done online here that might be prone to hacking and other cyber threats. Stay away from such adverse consequences. Hence, be alert and wise while selecting a wallet provider; choose only the legitimate one.