An Introduction to Various Kinds of Cryptocurrency Wallets
Since the money you deposit in the bank is usually used to lend it out to others, you technically do not have full control over it. What you own is simply an IOU, or a promise by the bank to pay you.
Cryptocurrencies offer you the power to have absolute and total control over your money. And given the fact that cryptocurrencies have been increasing in value, it is vital to have your own cryptocurrency wallet to store and manage your coins.
A cryptocurrency wallet is a device, physical medium, program or a service that keeps track of the secret keys used to digitally sign cryptocurrency transactions for distributed ledgers. Because those keys are the only way to prove ownership of digital assets and to execute transactions that transfer them or change them in some way they are a critical piece of the cryptocurrency ecosystem.
First off, digital wallets are quite different as compared to your physical wallet. Instead of storing money, digital wallets store private and public keys. Private keys are like your PIN number to access your bank account, while public keys are similar to your bank account number. Ownership of your private keys gives you total control over the funds associated with your corresponding public keys.
Wallets for cryptocurrencies can come in different forms, with different levels of security and pros and cons for using them. The main two are hardware and software wallets, and also the variations of hot storage or cold storage, but there are other kinds as well that typically fall within one of these categories.
Below we explain different types of wallets, so you can grow an understanding and determine which one will be the best for you:
1- Hardware Wallet
Hardware wallets, as the name suggests, are hardware devices built specifically for handling private keys and public addresses. It is a USB-like device which you can connect to a PC or mobile device via USB.
hot wallets are wallets that easily plug into the internet and are accessible through a web portal. They are considered ‘hot’ because of the greater ability for activity and accessibility. This is better for frequent transactions, trading, and frequent access. Although, this can be hazardous because they are more susceptible to hacks because they are often online.
Cold wallets are the more secure of the two. Cold storage wallets are held offline, which makes them much harder to hack or steal because they are not always accessible. These types of wallets are best for cryptocurrency that you are not using frequently, you are sitting on for longer-periods of time, or hold a lot of coins. If you have a lot of crypto, you want your tokens in a cold storage wallet. It is much more secure, and although it is harder to access for trading or buying and selling, it ensures your security and prevents loss or theft of your funds.
Hardware wallets are typically cold storage wallets. Hardware wallets are usually regarded as the most secure form of storing your cryptocurrency, while remaining somewhat easily accessible.
If you are holding onto your crypto for longer periods, you definitely do not want to hold them in certain wallets that are more vulnerable to attacks. These would be hot wallets, and online web wallets or mobile wallets. Hot wallets are ones that are easily connected to the internet, and therefore accessible through the internet anywhere.
Cold storage wallets, which are not connected to the internet, would be better for the purpose of storing cryptocurrencies for long term purposes.
2- Software Wallet
Software wallets can come in a few different types. These are wallets that are typically ‘hot’ and are frequently connected to the internet. These wallets can be on your computer, laptop, or phone, and provide ease-of-access to your tokens. You download the software client and then create a wallet. It is usually divided into two major sub-branches:
- Desktop wallets: For laptops and computers; where the software is installed on your device. You can use a lot of these wallets without being connected to the internet.
- Mobile wallets: Wallets for mobile devices (i.e. cell phones); you download an application for your device. These have pretty decent security, and have easy functionality by using QR codes, allowing for quick transactions.
3- Physical Wallet
Paper wallets are a wallet form which can hold crypto completely hard copy and undigitized. These are ultimate cold storage wallets for cryptocurrencies. You pretty much just print out your generated paper wallet (pretty much printing your public and private keys), and lock it up in a safe or safety deposit box.
Paper wallets require a high level of caution from the user. It is so because in a typical paper wallet you just print your private keys and public addresses on a piece of paper and start transferring your digital assets on it.
Counos Crypto Wallet
Counos Platform came to the surface in 2017 in Swiss and has attracted a great number of Loyal Members. The platform does not exist just for profits but to bring meaning to Digital Assets and Business. Credibility remains the strong point of Counos and the team always looks to facilitate each one of us in this domain.
Global Financial Trade and carrying out Digital Transactions is super easy when you are part of the Counos Platform. Most users were unsatisfied with the previously used cryptocurrencies as they were not stable enough and their value determination always remained unstable.
What sets apart Counos from other Cryptocurrency providers is the financial stability it brings to your Crypto assets. They have put in their maximum effort to keep prices stable and offer reliable Cryptocurrencies through their platform.
Counos Platform currencies are backed by superlative Financial Services and Counos Wallets. Three different Counos wallets are available for the Members which they can use to hold their Currency both online and physical storage: Counos mobile wallet, counos windows wallet and counos paper wallet.
- Counos crypto mobile wallet is an App for Android and iOS mobile phones which enables you to address sending and receiving cryptocurrencies simply and securely.
- Counos crypto windows wallet is run through computers and enables users to send and receive cryptocurrencies and manage their digital assets on windows.
- Counos crypto paper wallet, is a totally undigitized wallet that enables the users to keep a copy of their assets. Counos crypto paper wallet is an example of cold storage wallets for keeping cryptocurrencies.
Counos crypto wallet supports a collection of the best cryptocurrencies including Bitcoin, Litecoin, Dash and Ethereum, and there will be no need to have different Apps if the user installs it.
Crypto wallets offered by Counos implement the MultiSig wallet technology on numerous occasions. But mainly this technology is used in the Counos Escrow System and in Counos Decentralized Exchange (otherwise known as Counos DEX). The MultiSig wallet technology ensures a higher level of safety and security for the content of a wallet, guaranteeing that it cannot be accessed by just one party.