When it comes to acquiring crypto assets, it is of the utmost importance to decide which will be the wallet to store the acquired cryptocurrencies, for this some parameters and suggestions must be taken into account since the ideal is for digital currencies to be as secure as possible.
A “Digital Wallet” is basically the equivalent of a bank account. It allows you to receive Bitcoin and other currencies, store them and send them to others. It is a software that stores your public and private keys (they always go together) and allows you to control and review your balance.
The main thing is to keep your private keys protected, to keep your cryptocurrency wallet safe.
Private keys are like your card PIN number and are used to access your account. This key must be kept private to ensure that no one else has access to your account. Public keys are like the bank account number where you will receive your cryptocurrencies.
It is recommended to always have backup copies of your wallet’s private keys and the seed of any Wallet you have.
Types of Cryptocurriency Wallets
There are different types of purses or Wallets, although they may work differently, they all have different benefits.
This type of Wallet is totally immune to any computer attack as it is permanently offline.
Basically, a Wallet of this type is a printed document that contains a public address where cryptocurrencies can be sent, allowing you to safeguard and protect your private keys in a much more secure way.
The best way to operate with this type of wallet is through QR Codes to be able to scan them and carry out a transaction.
The advantage of a paper wallet is that the keys are not stored on any network, making it impossible for hackers or viruses to carry out any digital theft.
But the most important thing is to take the necessary measures to store the paper and protect it from loss, theft or damage.
It is carried on your smartphone, they run exactly like an application, it allows you to pay directly with your cell phone.
There are even some that allow you to use proximity functions, something similar to the “Contact Less” of our cards, with which you can pay simply by touching the phone.
You must have the seed of your cryptocurrency wallet saved, so in case of loss of your cell phone you can restore it on another device, you must also configure a password that is used when sending cryptocurrencies, thus guaranteeing the protection of your balance.
Like Mobile Wallet, it allows users to access their assets from anywhere the device has internet access.
It is important to choose our online Wallet well since the administrators of each one can have access to the private keys and thus control all your cryptocurrencies.
Desktop Wallets are installed on your own computer, storing your private keys on your hard drive. For the same reason, they are safer than online or mobile wallets, since they are totally independent as they do not depend on a web connection.
From the point of view of the security and confidentiality of the storage of an investment in crypto assets, they allow control over the private key.
Physical Wallet / Hardware
They are also part of the Cold Wallets due to their cold storage condition, since they do not remain connected to the Blockchain or the internet.
They are immune to virus and Malware attacks that can infect the device and steal the private keys. Therefore, they allow the storage of large amounts of cryptocurrencies safely and efficiently.
It allows absolute control over private keys and funds, no third party is required for key handling and cryptocurrency management.
Understanding the operation of storage wallets is essential since it guarantees the safe use of this new technology, every day there are great advances in terms of security and new wallets will come onto the market.