The crypto market is growing drastically at the rocket speed. Every day the crypto space attracts new investors to purchase and trade distinct crypto coins. In this “Black Swan” crisis, the investors are transferring their funds, investments to stable assets of their choice. Some, invest in precious metals, whereas others go with the cryptocurrencies of their desire. Cryptocurrencies are therefore addressed as “Gold 2.0” by the financial experts.
In this post, let’s look at the cryptocurrencies and the wallet app types!
A brief of cryptocurrencies and wallets!
Cryptocurrencies are virtual currencies that are utilized as a medium of exchange in many parts of the world. The cryptocurrency is encrypted with cryptographic codes, and the transactions are recorded on the blockchain distributed ledger. The crypto transactions are controlled and approved by the authorized miner nodes of the blockchain network.
Every crypto owner requires a wallet to store and perform transactions in their cryptocurrencies. A crypto wallet is an interactive tool that helps crypto coins to connect with the native blockchain network for transactions. The fiat mobile wallet, like Paytm, PayPal stores the assets in your bank account and allows you to perform transactions, whereas the crypto wallets store only the public and private keys of the account. Public keys are just like email-addresses or usernames of your social media accounts. Just like sending emails, you can transfer cryptocurrencies to another wallet, if their public address has been shared with you. Private keys are confidential as like your passwords, PINs, and it must not be shared with anyone. Once if your crypto wallet private keys are exposed, hackers can steal the crypto assets from the application!
Customized multi-cryptocurrency wallet development that grabs great attention from crypto investors in recent times. You can approach a wallet development company to build your application right from square one or patch up the white-label multi-currency wallet that is available in the market. But, before building a wallet application, you must know the types of crypto wallets available in the market.
Here’re the types of crypto wallets that are available in crypto space!
Types of crypto wallets
Crypto wallets can be majorly classified as
- Hot Wallet,
- Cold Wallet.
Let’s peep through each category of wallet in detail!
Hot crypto wallets are the one that is installed in the internet-connected device. The hot wallets are further split into:
- Mobile Wallets,
- Desktop Wallets,
- Web Wallets.
Cold wallets are the one that has no access to the internet. A large number of crypto investors consider cold wallets as a safer option to store their crypto coins!
The crypto cold wallets are available on distinct choices:
- Hardware wallets,
- Paper wallets.
Cold wallets are connected to desktops or personal computers and then authorized with an offline verification process to perform transactions.
Professional crypto-traders grab both hot and cold wallets of their choice to secure and access their crypto assets. Hot wallets like mobile wallets are utilized for the storage of minimal crypto coins to perform instant transfers. Cold wallets like Ledger Nano S, Trezor is utilized to store the bulk amount of crypto coins. However, if you seek customized cryptocurrency wallet development, the service provider affords you with a mobile wallet and a cold wallet of your choice for backup plans!