All About Cryptocurrency Wallet – What Is It and Its Types 2018
Cryptocurrency Wallet – Definition Of Digital Wallet
A cryptocurrency wallet is a software program called ‘digital wallet’ that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. It also acts as a personal ledger of transactions. They are not like traditional ‘pocket’ wallets, as they don’t store currency in any physical form.
These are the records of transactions stored on the blockchain. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.
Different Types Of Cryptocurrency Wallets
Basically there are 3 distinct categories of cryptocurrency wallets
- Software: Software wallets can be a desktop, online or mobile.
- Desktop:These wallets can be downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. It offers one of the highest levels of security, only unlucky if your computer is hacked or gets a virus.
- Online: These wallets run on the cloud and are accessible from any computing device at any location. Online wallets store your private keys online and are controlled by a third party. Due to this the chances of being hacked and theft increases.
- Mobile: These wallets run on an app on your smartphone and are useful because they can be used anywhere. They are usually much smaller and simpler than desktop wallets.
- Hardware: They are dedicated hardware that is specifically built to hold cryptocurrency and keep it secure. This includes USB devices. These devices can go online to make transactions and get data and then can be taken offline for transportation and security.
- Paper:You can actually print out a QR code for both a public and private key. This allows you to both spend and receive digital currency using a paper wallet.
Cryptocurrency Wallets Are Secure Or Not
The level of security depends on the type of wallet you use. Online wallets can expose users to possible vulnerabilities in the wallet platform which can be exploited by hackers to steal your funds. Offline wallets cannot be hacked because they aren’t connected to an online network and don’t rely on a third party for security.
There are several precautions you must take and be very careful:
1. Backup your wallet.Store only small amounts of currency for everyday use online, on your computer or mobile, keeping the vast majority of your funds in a high security environment. Cold or offline storage options for backup like Ledger Nano or paper or USB will protect you against computer failures and allow you to recover your wallet should it be lost or stolen.
2. Update software. Keep your software up to date so that you have the latest security available. You should regularly update not only your wallet software but also the software on your computer or mobile.
3. Add extra security layers.By setting long and complex passwords and ensuring any withdrawal of funds requires a password. Use only wallets that have a good reputation and provide extra security layers like two-factor authentication and additional pin code requirements every time the wallet gets opened. You may also consider a wallet that offers multisig transactions like Armory or Copay. A multisig or multi-signature wallet requires the permission of another user or users before a transaction can be made.
Note: Doesn’t matter which wallet you are using, if you lose your private key, you lose your money. There is no way to reclaim your cryptocurrency without them.
Top 10+ Cryptocurrency Wallets In The World – 2018
There are several options on the internet but here in this article we tell about the more than 10 best digital wallets for the cryptocurrency.
1. Ledger Nano S: Best Rated Cryptocurrency Digital Wallet for 2018
Ledger Nano S is a USB sized hardware wallet specially designed for the cryptocurrency. It is not a plug and play type device. This means that you do not need to have a computer to use this wallet. The small LCD screen in the front of the wallet will allow you to operate your wallet easily and to do functions like transaction, exchange your digital currency, use the related apps and transfer money from one account to another account within seconds.
The compact size of Ledge Nano S will allow you to make it secure from the hackers or the thieves. Even in case of any lost; you can always get the backup and block the thief to get access to your cryptocurrency account.
Features: Multicurrency support, Built-in display, Easy to operate, Security, Backup & Restoration.
2. Ledger Blue: More Advanced Cryptocurrency Digital Wallet 2018
This is another hardware wallet by the same company who has made the Ledger Nano S. This one is more advanced than the previous one. It is not only bigger in size but has a lot of new options which we have never seen in any other cryptocurrency wallet yet. Due to its stylish look, advance feature and specification, this is one of the most expensive hardware wallets available in the market. But it is totally worth because you are not just getting a wallet to secure your digital currencies but complete personal security devices which also features the touchscreen, Bluetooth, and USD connectivity.
It look like a mini iPad or tablet but when you explore it you will find that this wallet is quite different from them. There is onboarding option to control the wallet, setting option to set which suits you most and make backup easily and simply by tabbing few times etc.
Features: Secure elements, Malware Proof, Pin Code, Multicurrency Support.
3. Exodus: Secure & User Friendly – One Click Exchange Digital Wallet 2018
Exodus is a relatively new and unknown digital wallet that is currently only available on the desktop. It enables the storage and trading of Bitcoin, Ether, Litecoins, Dogecoins and Dash through an incredibly easy to use, intuitive and beautiful interface. Exodus also offers a very simple guide to backup your wallet. One of the great things about Exodus is that it has a built-in shapeshift exchange that allows users to trade altcoins for bitcoins and vice versa without leaving the wallet.
Features: One click exchange, Good privacy & security, beginner friendly, easy to use, in-wallet trading, supports multiple currencies, 100 % free.
4. Jaxx : Excellent Multicurrency Digital Wallet 2018
Jaxx is a multi-currency Ether, Ether Classic, Dash, DAO, Litecoin, REP, Zcash, Rootstock, Bitcoin wallet and user interface. Jaxx has been designed to deliver a smooth Bitcoin and Ethereum experience. It is available on a variety of platforms and devices (Windows, Linux, Chrome, Firefox, OSX, Android mobile & tablet, iOS mobile & tablet) and connects with websites through Firefox and Chrome extensions. Jaxx allows in wallet conversion between Bitcoin, Ether and DAO tokens via Shapeshift and the import of Ethereum paper wallets. With an array of features and the continual integration of new currencies, Jaxx is an excellent choice for those who require a multi-currency wallet.
Features: Good privacy & security, Multi-currency, wallet linking across multiple platforms, great user support, feature rich, user-friendly, free.
5. Bread Wallet: Simple And Secure Cryptocurrency Wallet 2018
Bread Wallet is a simple mobile Bitcoin digital wallet that makes sending bitcoins as easy as sending an email. This wallet can be downloaded from the App Store or Google Play and offers a standalone client, so there is no server to use when sending or receiving bitcoins. It means users can access their money and are in full control of their funds at all times.
Features: Good privacy & security, beginner friendly, simple & clean, open source software, free.
6. Mycelium: Digital Wallet For More Advanced Users 2018
Those advanced users searching for a Bitcoin mobile digital wallet, mycelium is for them. This wallet allows iPhone and Android users to send and receive bitcoins and keep complete control over bitcoins. No third party can freeze or lose your funds. It provides enterprise-level security superior to most other apps and features like cold storage and encrypted PDF backups, an integrated QR-code scanner and a local trading marketplace.
Features: Good privacy, advanced security, feature-rich, open source software, free.
7. Copay: Best Digital Wallets On The Market 2018
It is created by Bitpay, a one of the best digital wallets on the market. It can be easily accessed through a user-friendly interface on desktop, mobile or online. It’s a multi-signature wallet so friends or business partners can share funds. It’s simple enough for entry-level users but also has lots of additional features for the more experienced users as well.
Features: Good privacy & security, multisig transactions, multiple platforms & devices, multiple wallet storage, beginner friendly, open source software, free
8. Armory: Perfect Wallet For Expeirenced Users 2018
Armory is an open source Bitcoin desktop wallet perfect for experienced users that place emphasis on security. Some of Armory’s features include cold storage, multi-signature transactions, one-time printable backups, multiple wallets interface, GPU-resistant wallet encryption, key importing, key sweeping and more. You may take time to understand its complete features.
Features: Good privacy, great security features, multi-signature options, solid cold storage options, free.
9. Trezor: Highly Secure Digital Wallet for Bitcoin 2018
Trezor is a hardware Bitcoin wallet that is ideal for storing large amounts of bitcoins. It cannot be infected by malware and never exposes your private keys which make it as safe as holding traditional paper money. It is open source and transparent, with all technical decisions benefiting from wider community consultation. It is the best wallet for inactive savers, investors or people who want to keep large amounts of Bitcoin highly secure.
Features: Good security & privacy, cold storage, easy to use a web interface, in-built screen, open source software, beginner friendly.
11. Green Address: Multi-Platform Cryptocurrency Wallet With High Security 2018
Green Address is a user-friendly Bitcoin wallet that’s an excellent choice for beginners and can be accessed via desktop, online or mobile with apps available for Chrome, iOS, and Android. It provides multi-signature addresses & two-factor authentications for enhanced security, paper wallet backup, and instant transaction confirmation. The only drawback is that Green Address is required to approve all payments, so you do not have full control over your spending.
Features: Solid security, multi-platform & device, multi-sig, beginner-friendly, open source software, free.
12. Blockchain (dot) info: Most Trusted Highly Secure Digital Wallet 2018
Blockchain is one of the most popular Bitcoin wallets can be accessed from any browser or smartphone. It provides two different additional layers. For browser version, two-factor authentication, and for mobile, pin code requirement everytime the wallet is opened.
Features: Good security, easy to use interface, well-known & trusted company, beginner friendly, free.
Disclaimer: Please note that, this article is only for the information purpose only and not a trading and investment advice. Do your own research and take expert’s advice before trading and investing. Find out if trading is legal in your jurisdiction. Trading in cryptocurrency carries a high level of risk, and may not be suitable for all investors. Therefore trade and invest at your own risk. We will not be responsible for the any risk involved in it.