We’ve already discussed the platforms where you can hold your cryptocurrencies.
As mentioned in a previous post, the wallets can be stored in different devices.
There are 5 types of devices where you can download and store your wallets to hold your cryptocurrencies:
3. Mobile Devices
Firstly, is your desktop.
Your wallets can be downloaded on a PC or laptop. They are only accessible from the single computer in which they are downloaded. It offers very good security but the drawback is you are only able to access your wallet on the desktop and nowhere else.
The second drawback is when your PC is attacked by virus, the virus may also affect your cryptocurrency wallet and your wallet may get hacked. The virus may also access your private keys and your funds.
Secondly, your wallet can be downloaded and stored in cloud or online.
The wallets run on the cloud and are accessible from any devices in any location.
They are very convenient to access unlike your wallets stored on the desktop.
However, bear in mind that your private keys are stored online and other parties may potentially access your wallet easily.
The next wallet is your mobile wallet.
You can download your wallet on yourmobile device via the App Store or Google Playstore and others. Having your wallet on your mobile makes it very convenient as you have access to it anywhere you go.
A lot of them are quite secure as they have multiple signature accesses as well as backup features in case you lose your phone. This way you would not risk losing your crypto funds as the backup feature has backed up your private keyto unlock your wallet.
The fourth wallet is your hardware wallet.
A hardware wallet means you store your crypto funds on a USB or hard drive. Although hardware wallets complete their transactions online, they are stored offline and this enhances the security.
Last but not least is you can store your wallet on paper.
Paper wallets are wallets printed out on a piece of paper. They are very easy to use as you have the option to carry it wherever you go, or you can even store it somewhere safe.
Because they are printed out, they provide a very high level of security. While the term paper wallet can refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software used to securely generate a pair of keys which are then printed.
Now this leaves us with an important question, where should you store your wallet which contains your crypto funds?
This all depends on whether you are an active or passive user of cryptocurrency. To asses which user you are, you need to answer the following questions:
- Do you need a wallet for everyday purchases, or just buying and holding your digital currency?
- Do you plan to use several currencies or just one single currency?
- Do you require access to your digital wallet wherever you are, even when you are on the go or only from home?
For instance, if you are the type of user who constantly spends your crypto funds to purchase daily necessities, you may want to store your wallet in your mobile device or on cloud.
However, if you plan to buy and hold your currencies for future investments, it is best for you to store your wallet on a hardware or paper wallet.
Once you have chosen the best platform to hold your currencies, you can now proceed to the many digital currency exchanges to purchase your cryptocurrency and kick start your investment!