While you can store traditional currencies in banks for safe-keeping, cryptocurrencies are restricted from doing so. To store cryptocurrencies, you will need to use a crypto wallet. A Crypto wallet is a program allowing its owners to keep their crypto funds without fear of someone stealing it.
As cryptocurrencies do not physically exist, wallets do not technically store the currency. The only way of keeping track of your crypto balance is by looking at transaction records on the blockchain.
They are very similar to e-wallets, a vital difference between them though is that crypto wallets are far more difficult to hack.
Crypto wallet varieties
Several types of digital wallets exist for you to choose from. The first of these is a desktop wallet, this is software that you can be download to your computer to run on. The wallet is then restricted to only that device. If someone were to get ahold of your device, or you lose it, they can access these funds.
Mobile wallets are the next option, which as the name suggests, you download on a mobile device instead of a desktop. They function very similarly to a desktop device, in that you can only access them through that one device. Their benefit, though, is that you can spend your crypto in person with a QR code scan of your device.
Online wallets, or web wallets, are different from the previous two options. You can directly access them through an internet connection on any device. If the platform on which the funds are stored gets hacked, you may lose all your crypto savings. Therefore storing your funds online may be a more risky method, but you can access them more easily.
Paper wallets are much more secure than the last two options. You only need to print your public and private keys on paper. That’s it! As long as you keep the information safely locked away, no one can access them. In addition to this, you can scan a QR code on the paper for use in stores.
Hardware wallets are the most secure way to deposit cryptocurrencies. Only when you need to access them to make deposits do they connect to the internet. All that is needed to access them is a PIN code entered into the device, meaning anyone attempting to hack it must be physically present to do so.
Using multiple currencies
At this point, we should remember that different cryptocurrencies do not mix well, you may cause problems if you decide to do so, depending on the type of wallet. If you want to use multiple currencies, your best option is to use multiple wallets.
