Things to Know Before Choosing the First Cryptocurrency Wallet
Posted By Khushboo Arora | 07-Mar-2019
Disruptive technological trends like blockchain have already made a huge impact on industries like healthcare, real estate, mortgages, transportation and more. With the advent of blockchain technology, development of cryptocurrency wallets came into operations. Cryptocurrency wallet helps people store private and public keys which enables them to receive and send cryptocurrency with just the press of a button.
Cryptocurrency wallets do not store crypto coins but it helps users interact with blockchain during transactions. There are three ways in which users can save their cryptocurrencies:
Through cryptocurrency wallets, users have the leverage to opt for cold or hot storages.
Hot Storage: This type of storage option enables the user to store his coins online and they are usually prone to hacks.
Cold Storage: This type of storage option enables the user to store and secure their Crypto coins even when they are offline.
Hardware wallets, software wallets, and custodial wallets have been ruling the industry in their own specific ways. However, choosing the right one for your business app could be challenging. Before you proceed further and select a crypto wallet, read the points we have stated below to get the idea on cryptocurrency wallets and select the one which would be best suitable for your business.
Custodial wallets are the most preferred wallets and they are highly useful in the storage of private keys. Third party custodian looks after these private keys and saves them for the future. These are hot wallets and are a perfect option for someone who is new to the Crypto world. Custodial wallets come integrated with San Francisco-based cryptocurrency exchange and Hong Kong-based Bitfinex platforms and do not need to resort if the users need to use them. These wallets also enable users to quickly and efficiently manage their funds.
The only drawback of custodian wallets is that they do not provide complete control but they do give the users a high level of security when compared to others.
Software wallets are based on computer programming and can be accessed anytime, anywhere. Software wallets are available in three formats and provide a myriad of options to the users:
Desktop Wallets: First and foremost reason for using a desktop wallet is mainly because they can be easily stored in a laptop or a PC. With minimum or no interruption from the third party, users can completely access and control their funds. Security of funds is dependent on an individual’s due diligence. If the user's device is not updated with the latest security features, then the changes of hacking or virus may occur, resulting in loss of valuable coins.
Mobile wallets: Mobile wallets are easier to access as a person's private keys are stored in the application. Due to the contactless communication channel, people feel that smartphones wallets usually offer no level of security. Using hardware for security of crypto coins protects them from frauds. With an increasing number of smartphones users, mobile crypto wallets may also experience a noticeable growth.
Online wallets: Web-based cryptocurrency wallets are accessible anytime, anywhere and on any device. In this the third party stores the private keys thus the chances of theft are minimal.
Hardware wallets are currently in trends because they easily secure cryptocurrencies offline, ensuring a high level of security to the users. These wallets are available in the form of physical devices and offer complete protection to cryptocurrency and private key.
Are you thinking of getting a cryptocurrency wallet application developed? Get in touch with the techno-savvy experts at Oodles Technologies. List down your requirements and we will help you utilize your cryptocurrencies. Apart from the blockchain application development solutions, we also help our clients in post development and maintenance of an app. Contact us now for the best solutions in blockchain technology.