Hardware wallets are small USB-like devices used to store a user’s private key for optimal security. As with hot wallets, there are different types of cold wallets, namely hardware wallets, paper wallets, and steel wall Mobile wallets are smartphone apps downloaded from the app store or, in some cases, built-in features that come with a phone (for example HTC Exodus, Samsung Galaxy S10, KlaytnPhone, Sirin Labs Finney, Pundi X Blok on Blok, etc.). The most recognized mobile wallets on the market are:Ĭold Wallets (recommended way of storing crypto)Ĭold wallets are wallets that are not connected to the internet and therefore less vulnerable to hackers. Web wallets can only be accessed online through a web browser or app, making them more vulnerable to attack. The most recognized web wallets on the market are: The most recognized desktop wallets on the market are: Desktop wallets are downloaded onto a desktop or laptop computer and are generally considered to be the most secure hot wallet. Hot wallets are connected to the internet and this category can be split into three subcategories: desktop wallets, web wallets, and mobile wallets. The main differences between hot wallets and cold wallets. Hot wallets are also referred to as “software wallets” and cold wallets are also known as “hardware wallets,” even though a paper wallet (another type of cold wallet) isn’t a hardware wallet. Types of Crypto WalletsĬryptocurrency wallets can be classified into two categories “hot” or “cold”, depending on how the private keys are stored. These features include built-in exchanges, staking capabilities, charts, portfolio data, and more. Wallets allow users to send and receive crypto and many of them offer a variety of additional features that we will discuss further in this article. Whereas wallets in the beginning days of crypto had quite limited capabilities, modern crypto wallets offer their users much more. Wallets encrypt private keys to ensure security and usually, unlike exchanges, give a user full custody over the assets.Įxchanges normally have custody over cryptocurrency holdings on behalf of their customers, explaining why exchanges are such popular targets for hackers. In contrast, a private key, also a long string of letters and numbers, can only be seen by its owner and is used to sign off on transactions and access funds. A public key is a long string of letters and numbers which is open to everyone and can be shared to receive funds. Their main purpose is to store a user’s private and public keys. Crypto wallets can be either online software or offline devices.

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