Main Types of Cryptocurrency Wallets

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New Member
Jan 17, 2024
Cryptocurrency wallets can be categorized into several types based on how they store private keys and provide access to funds.

Hardware Wallets: Physical devices, similar to USB flash drives, that store private keys in an offline mode, making them more secure against cyber attacks.

Software Wallets: Software applications for installation on computers or mobile devices. They come in the form of online wallets (connected to the internet) and offline wallets (not connected to the internet).

Online Wallets: Stored on third-party company servers, usually requiring an internet connection to access your funds.

Paper Wallets: Keys printed on paper in the form of QR codes or text. This is one of the most secure methods of storing cryptocurrency as they are offline and not susceptible to cyber threats.

Among the general public, wallets are also commonly divided into "hot" and "cold" wallets. Hot wallets can be further categorized into custodial (private keys are stored by a third party) and non-custodial.