Holders of large amounts of cryptocurrency should choose highly reliable storage facilities for storing funds that have proven mechanisms to protect personal information and money. Such carriers are hardware or desktop wallets.
For financially active individuals, who often transfer cryptocurrency to other users and need quick service, experts advise purchasing mobile applications or online storage. But do not forget that storing large amounts on such accounts is unreliable.
Paper document can hardly be called reliable or very convenient. Most likely, this option will be optimal for conservative individuals who like to keep money in cash, always with them.
Desktop programs for storage crypto-currency
This type of wallets is used exclusively on computers and has a fairly high level of security for storing the private key and the crypto-money itself. A wallet that is installed on a computer can be of two types:
- “Fat.” Not the best option, because the program is downloaded along with the entire volume of the blockchain, which increases over time and takes up a lot of space on the device.
- “Thin.” It does not need to download the entire blockchain, but because of this, it guarantees a lower level of security for money and the key. The wallet is constantly looking for additional information to third-party resources, so the currency stored here becomes vulnerable to fraudsters.
Smartphone application which act as a wallet
Mobile crypto wallet is the most convenient option of spending crypto money in everyday life. This program is optimal for people who commit multiple transactions in one day. The application is installed on a smart phone. The program is arranged quite simply and clearly, allowing you to transfer your assets to extraneous accounts as soon as possible.
It seems that the only, but still significant drawback of the mobile application is the low level of cryptocurrency security. A client cannot use a local blockchain, because it simply cannot be downloaded to a smartphone. The program works with online servers. That is why experts do not advise saving large amounts of currency in mobile applications.
Peculiarities of work of online wallets
You can use your assets from almost anywhere in the world, the main thing is to have access to the Internet. An online wallet has the appearance of a regular website where your funds are stored. Thus, making various online transactions can be quick and fairly simple.
Internet wallets’ users should take into account the fact that their cryptocurrency faces many dangers: theft of private information, hacking into the wallet with malicious software, hacker attacks and more. That is why large amounts of crypto-money are not advised to be stored on the accounts of online storage.
Paper counterparts cryptocurrency wallets
This wallet is represented by a special document in which there is a copy of the private and public key. How does this mechanism work? Most often the information of such a document is encrypted in a QR code. With the help of a special application, the account holder can scan the code and quickly transfer funds.
You can purchase the document on specialized sites, where the most common Bitcoin addresses are converted into special images, two QR codes:
- The address used to receive the crypto money.
- The key that will be needed when sending funds to another cryptocurrency wallet.
The obvious advantage of a paper wallet is that the key is safe from dangers from the Internet. In this case, private information is not stolen by hackers or system malfunctions, because the key is on the most ordinary paper.
Naturally, the document is vulnerable to moisture and fire. Also, any person who stole an important piece of paper will be able to use your assets.