Similar to a bank account for fiat currency, a crypto wallet is a personal interface for a cryptocurrency network that provides reliable storage and enables transactions. Whether a cryptocurrency is securely stored or not, much depends on the wallet, which is only as secure as its private keys.
Wallets are generally either hot or cold. The funds in a hot wallet can be spent at any time, online. A cold wallet functions in contrast: not intended for regular cryptocurrency transactions, but funds can be received at any time. Wallets can also be divided into three groups: software, hardware and paper. Today, we will take a look at the most widespread group of crypto wallets ー software.
What is a software wallet?
Software wallets come in many forms, each with its own set of unique characteristics. Most are somehow connected to the internet and are hot in nature. Wallets are distinguished by a set of supported cryptocurrencies and software platforms such as Windows, Mac and other operating systems. Software wallets are available in three forms — desktop, mobile and online:
- Desktop wallets are computer programs that store cryptocurrencies on a PC so that its information is not accessible to anyone but the user, whose private keys are kept only on the desktop.
- Mobile wallets come in the form of a smartphone app and are easily accessible to their users at any time, considering most people don’t leave their homes without their phones. However, it is worth remembering that mobile devices are vulnerable to various malware and can be easily lost.
- Online wallets are web wallets that can be accessed from anywhere and any device, making them more convenient, but the private keys are stored by website owners rather than locally on user devices.
So, the burning question on everyone’s mind is: Which of these software wallets do I choose?
Exodus is one of the most popular software wallets for storing Bitcoin (BTC) and supports over 110 other cryptocurrencies. Launched in…