Crypto wallets are essential in keeping your cryptocurrency safe. There are different types of wallets available and choosing one can be confusing for so many investors. The three commonly used are mobile, desktop, and hardware wallets.
Mobile and desktop wallets are called hot wallets, which means they are connected to the internet. Hardware wallets, on the other hand, are cold and thus don’t require Wi-Fi. However, all these wallets are non-custodial. You have the full responsibility of protecting your keys.
In this article, we will look at mobile, desktop, and hardware wallets to help you determine the best option for your investment.
Hardware Wallet
Hardware crypto wallets offer offline protection. These are physical devices used to store your private keys. Since they are not connected to the internet or any other devices, hardware wallets are typically considered more secure, but they can be a little complicated to use.
Modern hardware wallets are more refined. For example, if we look at the Tangem wallet review, you will learn that these devices are designed similarly to modern credit cards and use smartphone displays, making them convenient to carry around.
Hardware wallets are ideal for large investments since they are highly secure and less susceptible to online attacks. It is best to buy these wallets from authorized dealers or the main company to avoid getting a counterfeit one.
Mobile Wallets
Mobile crypto wallets are apps you can download on your phone to manage your cryptocurrency. It can be on your main phone or another mobile device. These wallets are very portable, enabling you to make transactions on the go. Most mobile wallets have a PIN and a recovery phrase to increase security.
The major downside is walking around with your wallet is risky. You can easily lose your phone, which makes your wallet vulnerable to hacking. However, some people are adopting to use of a second phone as their mobile wallet which is more secure. The phone is often disconnected from WiFi and may even not include a plan. You only switch it on when making a transaction.
Generally, mobile wallets are ideal for people who use crypto often, especially in small transactions. It is also a good option for beginners who don’t have a large investment.
Desktop Crypto Wallets
Desktop wallets are software or programs you can install on your computer. Most wallets are compatible with common operating systems like Windows, Linux, and Mac. These are very similar to desktop wallets but some providers offer extra advantages.
For example, some software wallets allow you to keep your keys offline on a USB drive, essentially functioning like hybrid crypto wallets. Desktop wallets are more secure than mobile ones but are not portable since it is not quite convenient to carry your desktops everywhere.
The main risk is that if your device gets infected by a virus or malware, your crypto could be jeopardized. Desktop wallets are a good alternative for anyone looking for a secure wallet that is not for everyday use.
Conclusion
Choosing the best crypto wallet depends on your use and the size of the investment. For those who use crypto daily, mobile wallets are the best choice. If you want a foolproof, secure wallet, opt for hardware. However, if you are using browser-generated wallets watch out for security vulnerabilities like Randstorm which is currently impacting billions in crypto assets worldwide.
