If you were to start trading in the cryptocurrency industry, then there wouldn’t be much that you’d have to worry about. This is because in the start, there were neither many cryptocurrency exchanges nor many cryptocurrencies in the market. Therefore, there wasn’t much that had to be done in the cryptocurrency sector. Initially, most of the analytical or trading signal generation was being carried out manually. The analysts were able to run manual crypto price analysis and generate signals based on them. However, as the cryptocurrency sector progressed, the number of cryptocurrency exchanges, cryptocurrencies, and cryptocurrency products continued growing. As the industry grew in size, so did the number of fraudsters and scammers. Therefore, it had become extremely important for one to have a cryptocurrency wallet that would be extremely safe and secure to store your tokens. Initially, not many efforts were made in order to keep the wallets safe and protected from scammers. However, with time, the scammers found ways to gain access to the wallets of the cryptocurrency users. Therefore, it was extremely necessary for the industry to come up with different kinds of cryptocurrency wallets. This way, it is completely up to the users to adopt the crypto-wallet as per their need and preference. So let me go ahead and lay out some of the major cryptocurrency wallet types that you may find useful in the cryptocurrency industry:
The cryptocurrency wallets have been branched into two major types where the first and the primary kind are the software wallets. These wallets are software-based so have no physical existence. These are extremely convenient to handle as you do not have to hold them or keep them somewhere safe. However, there is one drawback to these wallets, which is that as these wallets are software based, they have the tendency of getting accessed or acquired by hackers or fraudsters. If that happens, then you know what the hackers or fraudsters would do next with your funds:
The web-based wallets can be accessed from anywhere, given that there is an internet connection from where you are trying to login. However, the wallet being on the internet means high chances of getting hacked or accessed by hackers/scammers.
These wallets are not internet-based as they are installed in your computer or operating system. These wallets are offline so there is no internet threat. However, if someone ends up gaining access to your desktop or operating system, then they can steal the wallet and the keys inside of it.
These are also offline wallets that you can download from smartphone application stores. However, your smartphone is just like your desktop. If someone ends up gaining access to it, they can steal the keys store inside your wallet, thus giving access to you cryptocurrency keys.
As the name suggests, the hardware wallets exist physical and let you store the keys to your cryptocurrencies in the wallet. As these wallets do not connect to the internet, there is no high risk related to these wallets. However, these is one major problem that may compel you to have wallets in the form of software than hardware. This is because the hardware wallets have to be carried physical, which increases the probability of you losing or misplacing your hardware:
Digital USB Wallets
If you start enquiring about a reliable hardware wallet, the digital USB wallet is the option to go for. This is because these hardware wallet is available in the form of a USB. At times, the USB wallet is completely analog, meaning there is no screen on it. However, people are now going for digital wallets that have an integrated digital panel showing them their keys or other information about the cryptocurrencies. Although these wallets are safer than the software wallets, their only drawback is their physical existence. You have to keep them at a safe place away from fraudsters or snatchers.
Then there are paper wallets that have the keys for your cryptocurrencies printed on them. They also have a barcode that you can scan to view your cryptocurrencies. However, their paper form makes them very inconvenient and difficult to carry around and most importantly, keep them safe.