A Wallet or cryptocurrency wallet is a kind of “bridge” that allows us to manage our own cryptocurrencies, allowing us to carry out reception and sending operations through the blockchain that each cryptocurrency owns. Next, we will know the types of Wallet that exist and their uses.
How is it working?
Wallets are essential elements when making operations with cryptocurrencies, and this is because through them you can receive and send cryptocurrency payments. Bitcoin and other currencies are fully digital, that is, they do not exist on the physical plane, and they work based on crypto (unlike the traditional financial system of money). In this sense, the importance of wallets is that they allow funds to be operated and managed, although what is stored in them is really public and private keys.
A private key is a kind of “security key” made up of a series of cryptographically generated random numbers that are almost impossible to decipher. This key belongs only to the owner of the cryptocurrencies and is the way that he has to protect them and verify that they belong to him.
Types of wallets
Managing cryptocurrencies today is very safe with the applications that exist in the digital market through Wallets, which are of great importance for everyone who wants to operate with crypto assets. Next, we mention the most common types of wallets:
Wallets that are in the cloud
This is the type of wallet that is more versatile but has a little more risk because it has the problem that it can be hacked (although this level of security will depend on the company behind this wallet service). However, it must be taken into account that the transactions carried out with cryptocurrencies are always private.
Wallets on the computer
This type of wallet works like a program that we install on our desktop or laptop computer. Software is installed in which crypto assets can be stored. By not being connected to the network they have a great advantage since they are less vulnerable to hacker attacks.
This type of wallet has almost the same function of the Wallets that are installed on the PC, although this time it is on the smartphone where they work as an application that allows you to have control of the cryptocurrencies that we have in our account.
Wallets Printed or on paper
Computer security experts consider this to be one of the safest alternatives since it is impossible for anyone to access a document that we have printed and stored in a safe place. The only disadvantage that this type of wallet could represent is its vulnerability to the passage of time, weather conditions and the effects of human behavior such as forgetfulness or loss.
These are devices that work like a wallet in which the cryptocurrencies that we have in our account can be stored without any problem. These devices are also very safe since they are not connected to the Internet and are not exposed to hackers who steal our data and private information, however, if the device is lost, it would lose the funds that we had stored there.
What do you think about this topic? What type of wallet do you consider to be more secure?
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