Cryptocurrencies are digital assets with no physical existence. Therefore, digital currency marketers ought to use digital wallets or e-wallets to store their assets. Each wallet has two keys; public keys and private keys. They ensure wallet’s security. The public key is the wallet address and the private key is the password.

Types of digital currency wallets

Hot wallet and cold wallet

There are two general types of e-wallets:

• Hot wallet

• Cold wallet

A hot wallet is an online tool allowing users to store, buy and sell cryptos. Every hot wallet has a public key and a private key. Because of its online nature, it is exposed to the risk of hacks. Examples of hot wallets are Coinbase and Blockchain.info.

A cold wallet is an offline and physical wallet. They look a lot like USB storage devices. Since they are offline, their safety is much higher. However, if you lose or miss your cold wallet, you will lose all your assets. Examples of cold wallets are Trezor and Ledger.

Mobile wallet

A mobile wallet is used to store digital assets, gift cards, ID cards, etc. This type of cryptocurrency wallet is suitable for everyday transactions. For example, Trustwallet and Green address are mobile wallets.

Desktop wallet

The most common type of cryptocurrency wallet is the desktop wallet, which gives the user complete control over digital assets. Like mobile wallets, these wallets are great for day-to-day trading.

Web wallet

These wallets are installed on the web browser using a plugin. Ease of use is their advantage but always consider their low security.

Hardware wallet

If you are storing large amounts of cryptocurrency, a hardware wallet is the best digital currency wallet. Because private keys are stored offline, you are safe from being hacked. Some examples would be Trezor, Ledger nano, KeepKey.

Remember that not every digital currency wallet supports all currencies. Therefore, before choosing your wallet, make sure that the wallet you are choosing supports the currency you are considering.