Cryptocurrency & Blockchain Wallets
Cryptocurrencies and blockchains rely on secure management of private keys. This is the primary way to control access to funds and digital assets so it is important they are stored safely. There are a few different type of wallets available and we cover some of each below.
- Hosted Wallet - These are considered "hot" wallets as you place a lot of trust in a third party that is connected to the internet. Generally they are the least secure type of wallets but they are often the easiest to use.
- Software Wallet - This is arguably the most popular and default option. Your private keys are stored on your mobile or computer device and you interact with the networks using specialised apps.
- Hardware Wallet - Generally these are offline USB devices with a secure enclave where your private key is stored. They have no direct connection to the internet and as you authorise transactions on the device your private keys never leave the device. This is often considered to be one of the most secure methods of interacting with the networks.
- Cold Storage / Paper Wallet - If you plan to use cryptocurrencies as a store of value, it is possible that you won't regularly interact with the network. In this case some people choose to keep a hard paper (or steel!) copy of their private keys. This can be imported to other wallet types when needed and allows you to keep your keys pretty available pretty much anywhere.