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types of wallets?

So, what are my options for wallets?

So you have essentially 5 different options to store your wallet.

1. Desktop
2. Online
3. Mobile
4. Hardware
5. Paper

They all have their pros and cons. When people tell you one wallet is better than another, thats their opinion. It depends on how you as an individual decide which wallet works best for you. So lets go through each one and you can decide which one works best for you!

1. Desktop - wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.

2. Online - wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft. 

3. Mobile - wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile.

4. Hardware - wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. What’s more, making a transaction is easy. Users simply plug in their device to any internet-enabled computer or device, enter a pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger. 

5. Paper - wallets are easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.

So you just need to ask yourself, which wallet suits you best? I myself am a Paper wallet guy. I end up engraving them on metal plates instead of paper but its the same thing. I also am a Hardware guy and I have a lot of funds on a couple of different hardware devices.

Once you have decided which wallet fits you best, the next step will be finding a version of that wallet that you like the best. That is what we will be covering in the next section.

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