What is a crypto wallet?

Cryptocurrencies have certainly become the highlight of 2017 and will soon be taking over the world and allowing people to pay for their groceries in bitcoin or ethereum. These digital assets have received so much media attention that it is hard not to hear a story about them at least once a day, whether the topic be about blockchain or bitcoin although it is usually both.

The rise in popularity has had an effect on people to want to be part of the crypto environment (though some would argue it as a bubble), and this has spurred them to take drastic measure to gather the capital necessary to purchase as much of it as they can. Again, some people would make the argument that cryptocurrencies are a bubble and their life span will be severely short lived.

But what happens when these people buy the crypto, how do they manage to keep it safe and store it because they aren't physical items, they are digital. So how can you store them safely? Well just like how you keep your normal money safe, you keep it in your wallet.

These digital wallets are specifically designed to store many different forms of virtual currency, whether that be the major cryptocurrencies like bitcoin, ethereum, ripple or dash, and even some of the lesser known ones. It is extremely important to have tight security on your crypto stash, which is why these wallets are very popular especially since the recent cyber attacks on many of the world's most popular cryptocurrency exchanges. There isn't just one type of wallet either, in fact that are many different wallets that offer different levels of security.

Software Wallets

Firstly, there are software wallets, that are more commonly known as desktop wallets which are programs that can download from certain websites, and they are only accessible from the single computer in which they are downloaded. Software wallets can offer some of the highest levels of security when it comes to storing your crypto stash and keeping them safe.

Aside from desktop wallets that you download to your computer, there is also the option for an online wallet, where they run on the cloud and can be accessible from any device, and these particular wallets are perfect for those who are always on the move. Whereas the desktop wallets are more suited to those who don't travel so much.

Hardware Wallets

These kinds of wallets are very different from software wallets because they are actually physical devices that can store the virtual currency. This method of storing your cryptocurrencies introduced the idea that you can transport your coins with you wherever you go, which would certainly increase the security.

One of the many great things about hardware wallets is that they are capable of storing your stash, as well being able to carry out transactions too, and even though they are able to process transactions the coins are stored offline, which greatly improves security. Hardware wallets can be compatible with a number of different web interfaces and can support a number of currencies as well, but it all depends on the type of wallet you use.