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The different types of bitcoin wallets on the market today

Bitcoin wallets are similar to the usual bank accounts. These wallets are used for storage, sending and receiving of bitcoins. They have a unique design of operation. They operate using private and public keys. Private keys are used to provide access to your account while public keys, on the other hand, are used in sending and receiving money. Nowadays, there exist so many bitcoin wallets although all of them fall into 4 different categories.

Online wallets

Online wallets are also known as web wallets, a type of hot wallets (those that are only designednotes in a wallet to operate online and have their secured storages online). They are the most comfortable kind of hot wallets to use. They are easy to access and login. One can also log in via any device as long as it has access to the internet. They are secure because their private keys are stored on another server.

Software wallets

These are a version of hot wallets that require downloading software clients that are meant to create and use them. Software wallets are also multi-platform because they can be installed on both smartphones and desktops. Mobile block-chain versions are fully personalized and are very easy to use. You can control your account with a lot of ease and with all tools provided.

Hardware wallets

Hardware walletsHardware wallets are standalone cold storage devices that have an inbound chip that has a capability of generating private keys with ease. They mostly look like a USB that can be connected to the computer or the phone with special USB cables that are strong. Hardware wallets are known to provide utmost security for your investment and cryptocurrencies. This is because of their offline-enabled mode of operation. They are very easy to use and don’t necessitate one to learn a lot of technical details to maneuver within. They provide a perfect experience when monitoring, securing and managing your investments.

Paper wallets

A paper wallet is just a fancy term that means printing out your public and private key on a sheet of paper. They are considerably secure compared to online and software wallets because when printing, it’s you alone having the printouts and when viewing, you ascertain that no any other person is around to peep. Online and software wallets are vulnerable to hacks and so might be a bit insecure when working with them, especially when working with large chunks of cryptocurrency investments.

bitcoin symbol

What are the benefits of cryptocurrency?

The term ‘cryptocurrency’ has become popular over the past few years as more and more people have been talking about it as well as using it. What is it and how will you benefit from it?

First of all, cryptocurrency can be best described as a ‘digital wallet’. It is the same way as having a traditional wallet wherein you store your money, but with cryptocurrency, everything is done online. You won’t have to carry around real money, hence reducing the risks of losing your cash or getting mugged.

If you choose the best bitcoin and ether wallets, you will be able to enjoy the following benefits:

Helps avoid fraud

Just like what we have mentioned earlier, your asset is a lot safer with cryptocurrency. You won’t have to deal with counterfeit money or anything like that since it is digital.

a hand out of a phone

Prevents identity theft

Another huge advantage of utilizing cryptocurrency is it can help avoid identity theft. For instance, when you are purchasing something online or even from physical stores, and you intend to use your credit or debit card, you will have to provide all your important information such as your full name, account number, card number, and the security code at the back of the card.

Anyone, who has bad intentions can take note of all these info, and they can use your account. But with cryptocurrency, there is no need for you to worry about such because you, as the purchaser, is the one sending the payment. You can specify the exact amount that you will be paying, and you won’t have to provide any other info aside from that.

Can be used internationally

man holding tabletSince cryptocurrency has now become the trend, you can already use it internationally with no hassles. More and more merchants are accepting it, and so, you can use it for just about anything that you want to purchase from another country. Or, if you are a business owner who needs to transfer money to an account in another country, cryptocurrency is also a great option. You will be able to complete the transaction in just a few minutes unlike when doing it the traditional way, which would require some verifications. Such processes may take a while, so you can just imagine the delay in your transactions if you stick to the conventional way of transacting online.

Cryptocurrency is, indeed, beneficial. You just have to make sure that your digital wallet is well-protected.