Cyptocurrency wallets and their overall security aspect
Cyptocurrency wallets and their overall security aspect
There
exists many types of cryptocurrency wallets to permit users store and access
their digital currencies in different ways. The question that is match in this
context is how far are these wallets safe. Before taking the security aspect,
it is supportive to understand the many types of varieties of cryptocurrency
wallets that exist today.
Cryptocurrency
wallets: varieties and types
These
wallets can broadly be classified into three categories:
·
Paper wallets
·
Hardware wallets
·
And software wallets
Cryptocurrency
program wallets can again be sub-divided into online, desktop, and mobile
wallets.
Desktop software wallets
These
wallets are meant to be downloaded and installed on notebooks and desktop PCs.
This particular range provides the highest level of security though their
accessibility is restricted only to the computer in which they are installed.
Additional, in case, if the computer gets hacked or is virus-infected, there is
a chance that one may lose all his or her money.
Online software wallets
This range
of digital currency wallets run on the Cloud. Thus, they can simply be accessed
from any computer gadget and from any geographical place. Apart from
accessibility, this kind of digital wallets store the private keys online. They
keys are even managed by 3rd parties, this makes them simply vulnerable to
theft and hacking.
Mobile software wallets
Unlike
the 2 other varieties, mobile software wallets run on smartphones through an
application. These can simply be used everywhere, including malls and retail
stores. This range of the wallets is generally much simpler and little matched
to the normal desktop ones to accommodate with the extremely limited area on
mobile handsets.
How safe
cryptocurrency wallets are:
Different varieties of digital wallets provide
different levels of security. The security aspect largely depends on 2 factors:
·
The
type of wallet you use - paper, hardware, desktop, online or mobile
·
A
picked service provider
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