Hardware or Software Wallet

How Does a Digital Wallet Work?

Types of Cryptocurrency Wallets

  • Desktop Wallet: With a desktop wallet, your currency is stored on a PC or laptop. Many traders prefer this type of wallet as it offers optimum control without a third-party interface. That said; security can be an issue as it’s totally up to you to protect your coins.
  • Mobile Wallets: These wallets are accessible through an app on your mobile device and can be used anywhere. While one type of app stores your coins on your phone, the other gives you access to online storage servers. It is advisable to store a limited amount of digital currency on such wallets.
  • Online Wallets: Web-based wallets can be accessed from any device and any location. While this option is very convenient, the major drawback is that these wallets store the private keys online and are controlled by a third party, making them more vulnerable to fraud and hacking.



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