Wallet

types of wallet

We have four types of wallet for crypto currency, each one has it pros and cons, some of them used for just temporary holding. If you are new to the crypto currency world, I encourage you to read this blog, I show you the types of wallet, how you can make one for yourself and you can find one that suites your needs. Before you start to read this blog I want you to ask this questions form yourself: how much security you want from a wallet? how much crypto currency do you want to store in your wallet? how much transaction you do with this wallet? Please answer these questions then you can choose the best wallet that you need.

what is wallet?

Before we get in the types of wallet, let see what is a wallet in crypto. Wallet is stores all of your crypto currency like: Bitcoin, Ethereum, etc… If you want to transaction a currency or hold some currency, you need to have a wallet. Wallets have two keys, private key and public key, public key is like your credit card number, if someone wants to send you some currency you should give them only and only your public key ,they do not need another thing and your private key is like your credit card password, you should not share it with anyone.

E wallet

Wallet

E wallet is the temporary wallet, it based on the internet and it has the least safety and it could be dangerous for someone that wants to hold currency for long periods of time. If you register in Binance exchange (for example) Binance gives you a E wallet which is great for trading and worse for holding. My recommendation for you is: if you want to trade, transact the amount of money that you want (from your app wallet or hardware wallet) then start to trade, do not forget to do asset management in your trading (pro tip).

App wallet

Wallet

App wallet is a software wallet, It does not based on internet and it has much more safety than a E wallet but still the safety rate for this kind of wallets are normal. App wallets are install on your phone or on your laptop and personal computer (pc) these wallets are great for normal or small holdings you can hold heavy holds in these wallets but I do not recommend it. If you are wondering how to find and install them, I show you how. In first step click on the button down below, it takes you to the Jaxx wallet website (you can use other app wallet like Trust wallet) then download the pc version of this wallet, install it and run it, it will give you recovery phrases, write them on three separate papers and hold it on three different locations (if you lose your laptop or pc, the recovery phrases could recover your lost wallet).

hardware wallet

Wallet

Hardware wallet is one of the most safe wallets you can get, it is an offline wallet, so the possibility of getting hacked is really low, if you are looking for a wallet that could hold your digital asset without worrying about its safety level, hardware wallets are made for you! Ledger Nano X is my pick for you, it cost you around CA$388 (Canadian dollar) and it is suitable for heavy holds. I will teach you how to setup it in future blog.

Paper wallet

Wallet

And lastly The Paper wallet, these wallets are the most secure wallets, it cost you nothing to have one but keep in mind that transaction fees in these wallets are high, so its suitable for long heavy holds. These wallets are on the paper, they have private and public key (on paper) but do not worry you do not need to type the public or private key you just need to scan QR code on them (both public key and private key have QR code). In future blog I show you how to create one for yourself.

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this blog is written by Erfan Samadi

 I hope you enjoyed! feel free to leave comment.

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Erfan Samadi