Cryptocurrency is the recent trend in all the trading markets. Recently, everyone is talking about bitcoin. Whereas bitcoin is the first discovered digital currency and its value is very high compared to other cryptocurrencies. You can buy and sell the cryptocurrencies in the bitcoin exchange trading platform.
But we need a Cryptocurrency wallet to store the cryptocurrencies in the exchange platform. So it is an important feature that we should integrate into your cryptocurrency exchange software. Many startups and entrepreneurs launched their own exchange trading platform using the cryptocurrency exchange script. Also, they integrated the secure Cryptocurrency wallet for storing a wide range of cryptocurrencies.
In this blog, let us see about the cryptocurrency wallet and the types of crypto wallets available in crypto markets in detail.
What is a cryptocurrency wallet?
Cryptocurrency wallet is a software program that is integrated into the trading platform. It holds the cryptocurrency in a safe manner. Also, it is mostly used to send and receive a wide range of cryptocurrencies from one wallet address to another wallet address. Transaction speed will be higher only when you use a premium cryptocurrency exchange wallet software.
Crypto wallets used to monitor the crypto balance in your exchange platform. It has both the private key and public key to provide a secure transaction between the users. Private keys act as a password, we need to enter the correct private key to transfer the cryptocurrency from your wallet. So keep your private key in a safe and secure document. If you share your private key with others, then your funds will be hacked or stolen by the hackers.
Public keys act as a digital address which is directly connected to the Cryptocurrency wallet balance. You can also integrate two-factor authentication and multi-signature vaults as additional security to your cryptocurrency wallet. So that hacking and scams can be reduced. There are two kinds of storage in the crypto wallet such as the hot wallet and the cold wallet.
The hot wallets are said to be online because you can access the balance only through the internet. Most of the online traders use hot wallets for storing their cryptocurrencies and crypto tokens. The cold wallets are said to be offline storage so that there is no need for the internet to access the Cryptocurrency wallet.
Many investors and businessmen prefer cold wallets for storing the cryptocurrencies. Because they have faith cold wallets will be more secure than hot wallets. Cold wallets are hard to hack and scam because they are offline.
Types of cryptocurrency wallets in crypto markets
There are five main types of cryptocurrency exchange wallet in the cryptocurrency market that you should know, they are
- Mobile wallet
- Web wallet
- Paper wallet
- Desktop wallet
- Hardware wallet
These all types come under the software Cryptocurrency wallets. Now, let us see the types of Cryptocurrency wallets in brief.
The Web wallet is referred to as a hot wallet because it works only through internet access. It stores and receives all the cryptocurrencies and crypto tokens. Web wallets are also called ‘cloud wallets’. It can be accessed through different web browsers such as Opera mini, Firefox, Google Chrome, and Internet Explorer.
Web wallets act as both the hosted wallet and non-hosted wallets. It depends on what type of wallet you are using. I prefer the non-hosted wallets because you can always control your funds in the wallet.
Mobile wallets are completely accessible only through mobile devices. It acts as a mobile application in both Android and IOS mobiles. It is also a hot wallet that stores all the cryptocurrencies in online storage through the internet. It stores all the payment card details on your mobile. So it is very easy to use for all the traders.
Also, it is easy to backup and restores the features. It has a QR code facility so that traders can instantly transact the cryptocurrencies.
A Paper wallet is a cold wallet that refers to the offline storage of cryptocurrencies. It provides high-level security. Paper wallets are used to make physical copies of both the private keys and public addresses. So it stores all your bitcoins, altcoins, and tokens on the printed sheet.
Also, it has the QR code for the transaction of cryptocurrencies. Hence, it is a sheet of paper so it can be easily damaged. But most investors and startups use paper wallets for security potential benefits.
A Desktop wallet is a software that you can install on a desktop or laptop. So you can store the cryptos safely on your desktop or laptop. But you should also install the antivirus software and strong firewall protection to avoid the hacks and scams. Because if your computer is infected with your virus or some internal damage. Then there is a chance of losing all your funds.
Hardware wallets are offline storage that acts as a storage device like USB. That stores all your bitcoins and altcoins in a device. So it will be safe and secure in the device. Some of the hardware wallets are
Choosing the best cryptocurrency exchange wallet can provide you a secured wallet. Also, you can transact fast and secure in a hassle-free manner. If you are a person looking to start a crypto exchange business. First, you should hire a best-secured wallet for your exchange platform. So that you can avoid the hacks and thefts of cryptocurrencies.