All of you guys have gone through the term crypto wallets. But not everyone is aware of its usage and benefits. In this article, we are going to discuss crypto wallets and will tell you some best use cases.

Crypto wallets

Crypto wallet is online software that allows users to keep their digital currency here and make transactions using this amazing technology.

Users can use this decentralized system to keep their digital currency safe and make online payments without any threat.

Crypto wallets allow the users to set a strong password. It contains two types of keys i.e., a private key and public key.

The private key is for the personal use of a person by which he or she can make the transactions without showing it to other users.

The other one is a public key that is used to send crypto to the wallet.  Users enter the public key and select the crypto wallet where they are going to send the currency.

Types of Crypto Wallets

The main two types of crypto wallets are software wallets and hardware wallets. Here we will discuss both of these and talk about the benefits of each of them.

·       Software Wallets

Software wallets are online applications that are used on mobile phones and web browsers. Not many users are aware of their usage, so they are designed with a simple and user-friendly interface.

These wallets hold private keys only thus making them usable for a single person only. But still, some people feel that the software wallet is insecure to use. The reason behind it is that you have to use it online using a mobile application or browser.

Three main types of software crypto wallets are:

• Mobile application wallets
• Web-based wallets
• Desktop application wallets

·       Hardware Wallets

Hardware wallets are physical devices that are used by connecting them with the computer or a laptop. Moreover, they are considered as more secure wallets.

To use these wallets, you have to connect them with your computer via a USB port. All the sign-in process is done offline on your computer – thus making it safer to use.

Users can connect the hardware wallet with the computer using three ways that are:

• Using any application created by the company
• Using Software Wallet

Pros and Cons

Everything has its advantages and disadvantages, so the crypto wallet also has pros and cons. Here we are going to discuss some of them.

Pros

• Easy to access
• Restrict use from others
• The money belongs to you

Cons

• Users may make a blunder that can lead to losing all the money.
• To use a crypto wallet, you need to have some knowledge about online transactions.
• The wallet may not be opened once the password is lost.

Final Thoughts

Crypto wallets are essential tools for online trading i.e., to send or receive money. Is this something that you would be interested in utilizing? How could this secure assets in your personal life? Are you against using this form of value trading? What are your thoughts?