STACH Educational Series #3: Understanding your Cryptocurrency Wallets.

in #stach7 years ago (edited)

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With the constant rise of Bitcoin and other cryptocurrencies, more and more people are investing in this space and many may have a hard time getting to know the kind of wallet to use for the purposes of saving their coins.

So this article is meant to talk about some of these wallet types. For many who are not doing bitcoin, they may not really worry about getting any of these wallets, but it is better you know what type of wallet does what.

WHAT IS A CRYPTOCURRENCY WALLET?

A wallet in the Cryptocurrency space is a digital wallet that one can use to store, send and receive Bitcoin, Bitcoin Cash, Litecoin, Ethereum, EOS, IOTA and every type of cryptocurrencies.
Since it is a digital wallet, it doesn't exactly “store” your money like a real world wallet does; instead, it saves your public and private keys which in turn helps you send and receive money and process transactions online.



TYPES OF WALLETS.

There are quite some few wallet types that you may be familiar with, but we will look at them and get a clear understanding of the various types.

  • Mobile or Desktop Wallets.- This type of wallet are quite one of the popular types of wallet that always comes as a first choice for many.
    These types of wallet are downloaded and installed on a single PC or Laptop and can only be accessed from that one device. They are actually considered to be much better in terms of security thought it can be very inconvenient because access to the wallet can only be done through that particular device from which you installed the wallet. An example of this type of wallet is MultiBit and Armory.


The safety of your wallet is your sole responsibility. Guide it as you would your valuables because it is.



  • Online or Cloud Wallets.- This type of wallet is easiest to create and use as it can be accessed from any server anywhere in the world once there is an internet connection. It is a model that allows the creation of accounts on exchange services and mostly for the purposes of quick transaction.

  • Paper Wallets.- This type of wallet is the type that where users print out their public and private keys on a piece of paper. Paper Wallets are more secure than using software or online wallets because the users physically have their keys printed on a piece of paper and it is an offline type.



The safety of your wallet is your sole responsibility. Guide it as you would your valuables because it is.



  • Multi-Signature Wallet.- This type of wallet is one where two or more private keys are required to spend from the address. It is usually made by sharing public keys between groups of individuals to avoid human errors and provide a concrete security. It is often referred to as a democratic wallet accessible by two or more people.

  • Hardware Wallet.- These kinds of wallets are the types that are done on physical devices like the USB stick that you have to plug in whenever you want to do a transaction. An extremely convenient to use type with no requirement to understanding the complexity of the technical details. TREZOR or Ledger wallet are some example.

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Is it worth starting out with a Hardware Wallet, as opposed to the other options, especially if the person is new to the cryptocurrency game?

Thank you @ryanchain. It depends on the persons preference. I know lots of new entrants into the crypto space mostly find it easy to use the online wallet until they get a hang of the whole space. Some also choose to go for the Hardware wallet since it is non- technical.

If you're rich enough to afford a hardware wallet, you're probably rich enough to need one. That's the way it was explained to me back in the day. Personally, I spread my funds thin across multiple wallets for both security and redundancy reasons.

Great. Thanks for sharing. I'm starting to follow you.

Thank you @capari. Hope you find the information useful.

Thank you for stopping by.

I'll need to get myself a hardware wallet real soon. Useful article ✌️

Thank you for reading and being able to make up your mind on what wallet to get.

This is good. Thanks for sharing

You are welcome @lemmybe

Though, I am not too familiar with d crypto world, I'm glad I learnt something vital today cos now that I'm doing steemit, every info about crypto coin is important. Thanks..

Sorry, I'm doing this here, I'm quite new, have no idea how to send a private message to u. I was referred to u by someone. Heard u stay in PH and we've a group.

Hello @sbamsoneu, Yes we have a Hub (Office) in Port Harcourt and will be really happy yo receive you there. You can reach @ejemai on Steemit Chat. Its okay that you are here and we are here to help.

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