Know the importance and different types of crypto wallet

David Pasztor
March 24, 2020
484 Views

The demand of crypto currency is on the rise as many organizations and traders have started accepting this as alternate to many currencies. Hence to keep this currency secured, a digital wallet needs to be set up which can store all your crypto currency at one place. This is popularly known as crypto wallet and all regular users of crypto currency maintain their own digital wallet to keep their stock secured. People who want to be a part of blockchain network must have a crypto wallet and it is considered to be a very vital tool.

Let us now discuss a few facts about crypto wallet.

How to open a crypto wallet

One can download a crypto wallet from their Smartphone app or can access it from any web browser. Some online shops also sell them as hardware devices. Now have a look at the steps.

  1. Go to the Url through your web browser from where you want to open the wallet.
  2. After opening the website go to the option named “new wallet” and click. Immediately a new wallet gets created.
  3. Enter the password in the entry field and then click on “Create wallet”
  4. Then download the JSON or Keystore file and keep it in a safe place and do not ever share it with any third person.
  5. At the last step, a private key needs to be downloaded.

Different types of crypto wallets

Exchange wallets

The exchange from where the crypto currency is bought is included in this wallet. This is mainly used as a trading wallet as they can be easily accessed by the programmers and can move money out of it. Every year, around 15% of the money kept in the exchange wallet of the investors goes to misfortune.

 Hardware wallet

These gadgets have a touch screen display and a very small keypad.  Some well known hardware wallets include Ledger Nano S and Trezor. This type of wallet is the most secured of the lot as it is very difficult to hack them. Like others, they can be locked with a password and if a hacker gives three failed passwords, entire data will be deleted.

Software wallets

This can be installed in a desktop or in the Smartphone. This wallet is very easy to use and hence preferred by many. But it is very risky to use as hackers find it easy to hack.

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