Cryptocurrency Wallet, types and the most important differences between it

[Crypto123 0]

Hello,

I had promised my friend @Brushless4500KV to write a topic explaining the wallets of cryptocurrency and now I keep my promise and I am writing this topic.

Cryptocurrency wallets are divided into four main types:
 Web wallets, software wallets, hardware wallets, and paper wallets. We can divide them into two main groups, namely cool wallets and hot wallets according to their use.

 

Web wallets:
The wallet is a website similar to exchanges where you open an account on this site and then deposit and store digital currencies in it and when you want to withdraw or transfer, it takes you fees for that.
In this type of wallet you only need a username and password and you do not need a private key or something else. There are several web wallets but the most important ones are:
1 - https://www.blockchain.com

 

 

2- https://www.coinbase.com

 

3- https://www.coinpayments.net

Software or application wallets :
The wallet is a desktop program for the computer or a mobile application and this type is considered safer and better than the first type where you install the program or application on your device and upon completion it gives you private to keep it in a safe place until you use it to enter the wallet or restore it in the event you do soft Ware for device. Of course there are many programs and applications portfolios, the most famous of which is:
1- Electrum desktop wallet

https://electrum.org

2- TrustWallet Mobile App

https://play.google.com/store/apps/details?id=com.wallet.crypto.trustapp

 

3- Atomic Wallet

https://atomicwallet.io

 

 

Cold wallets :
Cold wallets are offline. Instead, it uses a physical device to store keys offline while making them resistant to online piracy attempts. It is thus safer to "store" your currencies. It is particularly suitable for long-term investors or "Holders".
for example :
1- Ledger Nano-X Wallet
You can buy it here: https://shop.ledger.com/products/ledger-nano-x

 

Paper wallets:
A wallet is a piece of paper on which the digital address and its key are printed in the form of QR codes. These codes can then be scanned to perform cryptocurrency transactions.

Some paper wallet sites allow you to download their instructions for creating new addresses and keys while offline. As such, these wallets are highly resistant to online piracy attacks and can be considered as an alternative to cold storage.

These wallets are considered the safest at all, but their main disadvantage is that you cannot send part of your money, but must be sent at once.
There are sites that provide paper wallet service such as:
1- https://www.bitaddress.org/
2- https://bitcoinpaperwallet.com/

 

Edited December 9, 2019 by Crypto123
correction

[Crypto123 0]

On 12/9/2019 at 6:34 PM, Hamk said:

Thanks for the write it helped really, for the newbies that will come will find it useful when selecting a wallet

 

2 hours ago, Nahna said:

I have to thanks the writer of this article because there is a lot of newbies together with us as crypto members. I know this article will help  them and even us to know the wallet more better then before.

Thank you, this is our duty here in the forum to try to be useful and provide useful information for everyone, we are here to learn and know others. This is the real benefit of this forum.

[Crypto123 0]

10 minutes ago, Hamden said:

Hello my friend
A good explanation of the topic of the portfolios and their types, only about the coinbase wallet
Can it be dealt with in North Africa?

welcome my friend
First I want to ask you in the next times that you do not quote the entire topic if it is long in this way, you can quote a small part so we can preserve the beauty of the forum.
As for your question, what is the exact country of North Africa? There are countries that this portfolio is prohibited. You can go to the site and know the countries that are banned.

[kazumina91 148]

I also know the wallets that you said, but to write a detailed article and share useful like this for members is very helpful, thank you very much for sharing.

[Brushless4500KV 4214]

On 12/9/2019 at 6:18 AM, Crypto123 said:

Hello,

I had promised my friend @Brushless4500KV to write a topic explaining the wallets of cryptocurrency and now I keep my promise and I am writing this topic.

Hello dear friend! Thanks a million for your great contribution to the forum.

There are some things to discuss about your topic:

 

1 - By reading your useful post, I can now understand why Blockchain wallet doesn't ask me anytime for my private key. This is probably because online wallets are designed to be the most user friendly for beginners and they take care of your private keys for every transaction. The only thing a beginner should adjust in an online wallet is the amount of fees. But I have heard that even online wallets have some hidden private keys which are difficult to obtain.

 

2 - I knew about other types of wallet except paper wallet. If I'm not wrong, paper wallet is something like a gift card with a fixed amount of money (correct me if I'm wrong). There are two points to mention about paper wallets. First one is how can you spend BTC with paper wallets? If you scan QR codes what will happen next? How can you choose another wallet address you want to send money to (I mean the receiving wallet address)? Do you still need an online wallet service to perform the transaction for you? This process is still a little vague for me.

[Crypto123 0]

10 hours ago, Brushless4500KV said:

Hello dear friend! Thanks a million for your great contribution to the forum.

There are some things to discuss about your topic:

 

1 - By reading your useful post, I can now understand why Blockchain wallet doesn't ask me anytime for my private key. This is probably because online wallets are designed to be the most user friendly for beginners and they take care of your private keys for every transaction. The only thing a beginner should adjust in an online wallet is the amount of fees. But I have heard that even online wallets have some hidden private keys which are difficult to obtain.

 

2 - I knew about other types of wallet except paper wallet. If I'm not wrong, paper wallet is something like a gift card with a fixed amount of money (correct me if I'm wrong). There are two points to mention about paper wallets. First one is how can you spend BTC with paper wallets? If you scan QR codes what will happen next? How can you choose another wallet address you want to send money to (I mean the receiving wallet address)? Do you still need an online wallet service to perform the transaction for you? This process is still a little vague for me.

you are welcome. Your words make me happy

1 - As for the first point, it is true in the web wallets, you do not need a private key, but any wallet in the world must have a private key.
2 - As for the second point, which is your question about the paper wallets, it is a private key write it on the paper and when you want to transfer it to another person all you have to do is give him the private key or the paper and he will go to the site that provides the paper wallet service and enter the private key that you gave him and thus This wallet becomes his property.
If the transfer will take place from one person to another, you do not need the Internet, and if you want to transfer it to another money or coin , then you need the Internet.
There are websites that support the paper wallet and convert it into money or other coin for some fees.
This wallet is largely safe, but its disadvantage is that you can only put in it one coin and you can not transfer an amount of coin, but must transfer all amount of coin at once.

for i.e if you have 1 BTC you can't transfer 0.1 BTC you must transfer 1 BTC.
I hope I have clarified the picture for you well and if there is another question I am ready.

[Crypto123 0]

19 minutes ago, CAGEGG said:

In fact, any wallet is no different from each other except for the interface and I can say that people choose wallets exclusively from their needs.

This is your opinion, but allow me to disagree with you, there are differences between the wallets in many respects, especially safety. Of course, there is no 100% safe wallet, but there is a more secure wallet than the rest of the wallets and therefore it is not considered COLD wallets the best types of wallets because they are the most secure.

[Brushless4500KV 4214]

Quote

There are websites that support the paper wallet and convert it into money or other coin for some fees.
This wallet is largely safe, but its disadvantage is that you can only put in it one coin and you can not transfer an amount of coin, but must transfer all amount of coin at once.

for i.e if you have 1 BTC you can't transfer 0.1 BTC you must transfer 1 BTC.
I hope I have clarified the picture for you well and if there is another question I am ready.

Thanks again for your answer dear friend.

Regarding the paper wallet, I have to say this kind of wallet is safer than online wallets or mobile wallets but I think it can be unsafe some times. It can be get lost or get wet. Papers can be ruined by water or tea. So, if someone uses this kind of wallet he should keep it on a closed and sealed box.

Another thing that concerns me about its safety is that the website which issues the data for printing may have access to the private key because when they give you the information for printing, they probably have the printer input for every wallet but I may be wrong.

If someone wants to use paper wallets, he have to print a new paper wallet for each amount of money to be sent because as you said you can only send the amount specified in the wallet.

[Crypto123 0]

3 hours ago, Brushless4500KV said:

Thanks again for your answer dear friend.

Regarding the paper wallet, I have to say this kind of wallet is safer than online wallets or mobile wallets but I think it can be unsafe some times. It can be get lost or get wet. Papers can be ruined by water or tea. So, if someone uses this kind of wallet he should keep it on a closed and sealed box.

Another thing that concerns me about its safety is that the website which issues the data for printing may have access to the private key because when they give you the information for printing, they probably have the printer input for every wallet but I may be wrong.

If someone wants to use paper wallets, he have to print a new paper wallet for each amount of money to be sent because as you said you can only send the amount specified in the wallet.

thank you my dear friend
Yes, what you say is true, it is true that the paper wallets are considered the safest, but as you said it is very possible that it will be damaged, lost or stolen so they should be kept well in a safe place. As for the site that issues the wallet, I don't think it has access to this key because it is highly encrypted and protected. Of course, unless this site was a scam, then yes, he can access your wallet and steal your money. It all depends on trust. And as I always say to my friends, nothing is safe in the world of Crypto 100%.

Finally yes you need to print a new paper wallet for each amount of money to be sent because the amount can only be sent at once.

[SuperCrypto 7193]

Great effort..I think that with huge risks associated with many Internet wallets, hardware portfolios are a favorite among many enthusiasts to search for safe storage options LEDGER NANO S is arguably the most important hardware portfolio on the market.

[Crypto123 0]

8 hours ago, SuperCrypto said:

Great effort..I think that with huge risks associated with many Internet wallets, hardware portfolios are a favorite among many enthusiasts to search for safe storage options LEDGER NANO S is arguably the most important hardware portfolio on the market.

Thank you, this is also my opinion: the hardware wallets are the best and the safest and are very popular with people due to the great dangers in the world of Crypto. Although, as I said earlier, there is no 100% safe wallet, but the hardware wallets remain the best.

[SuperCrypto 7193]

3 hours ago, Crypto123 said:

Thank you, this is also my opinion: the hardware wallets are the best and the safest and are very popular with people due to the great dangers in the world of Crypto. Although, as I said earlier, there is no 100% safe wallet, but the hardware wallets remain the best.

How is this type of wallet not 100% secure, these devices isolate private keys from devices that are connected to the Internet and are vulnerable to penetration, as well as are locked from the risk of connecting them in a device infected with viruses or malware.

[Brushless4500KV 4214]

13 hours ago, Crypto123 said:

thank you my dear friend
Yes, what you say is true, it is true that the paper wallets are considered the safest, but as you said it is very possible that it will be damaged, lost or stolen so they should be kept well in a safe place. As for the site that issues the wallet, I don't think it has access to this key because it is highly encrypted and protected. Of course, unless this site was a scam, then yes, he can access your wallet and steal your money.

I want to consult with you about two wallets. One of them is Blockchain online wallet and the other is Electrum desktop wallet.

Right now my only wallet is Blockchain and as you know it needs verification to let users send unlimited amount of cryptocurrency. It is a nice and safe wallet but I have this problem of money transfer limitation. I searched for a good wallet without verification and I found Electrum. I read some articles about it and some people had said it is not as user friendly as Blockchain. They had said you need to choose nodes to be able to work with Electrum. Does it mean that I should connect with other computers (or miners) on the network to be able to verify my transactions? Is it hard to run an Electrum wallet? What is your suggestion for me?

[Crypto123 0]

Just now, Brushless4500KV said:

I want to consult with you about two wallets. One of them is Blockchain online wallet and the other is Electrum desktop wallet.

Right now my only wallet is Blockchain and as you know it needs verification to let users send unlimited amount of cryptocurrency. It is a nice and safe wallet but I have this problem of money transfer limitation. I searched for a good wallet without verification and I found Electrum. I read some articles about it and some people had said it is not as user friendly as Blockchain. They had said you need to choose nodes to be able to work with Electrum. Does it mean that I should connect with other computers (or miners) on the network to be able to verify my transactions? Is it hard to run an Electrum wallet? What is your suggestion for me?

Yes true Electrum is the best desktop wallet, your choice is very successful, I recommend you to download it and work on it is not as difficult as you think. I usually store my coins on the exchange but recently I decided to download the Electrum Wallet and work on it because it has very great features especially that it supports Bitcoin lightning networks. I will try to find an explanation for you and give you the link Just give me some time and I will tell you as soon as I finish.

[NordisLofer 77]

Very useful information, thanks. In fact, it is very important to share your experiences with others. So we help each other, and we do it for free and quite efficiently.

[Crypto123 0]

55 minutes ago, Suthar Kuldip said:

Online Wallet. ...

Security level depends on the wallet. ...

Bitcoin: Bitcoin Core Wallet, Mycelium or Electrum.

Ethereum: Ethereum Wallet or MyEtherWallet (Paper Wallet).

Litecoin: Litecoin-QT.

Dash: Dash Core.

Thank you for participating, I think you have chosen good wallets, these are indeed the most popular and most popular wallets.

21 minutes ago, Goodcoin said:

I really like this article. I prefer the cold wallet storage. And precisely, hardware wallets are better because they are the safest.

Thank you, cold wallets are the safest among the different wallet types and I would recommend them permanently if available.

[doriahailee 643]

Nice explanation, Web wallet was the most good one for people that still new on crypto world, It's easy to use after that they can use software wallet to be more safe and controlling our asset fully and the last one it's hardware wallet is the most safest and most easy to use for some people.

[Crypto123 0]

10 minutes ago, doriahailee said:

Nice explanation, Web wallet was the most good one for people that still new on crypto world, It's easy to use after that they can use software wallet to be more safe and controlling our asset fully and the last one it's hardware wallet is the most safest and most easy to use for some people.

Yes, this is what happened with almost everyone. At the beginning of any person entering a crypto, he registers in the web wallets, as you say, they are easy to use and do not need experience or protection of a private key or the like. Desktop or hard wallet.

[doriahailee 643]

4 minutes ago, Crypto123 said:

Yes, this is what happened with almost everyone. At the beginning of any person entering a crypto, he registers in the web wallets, as you say, they are easy to use and do not need experience or protection of a private key or the like. Desktop or hard wallet.

Good work for making this post mate, So people will understand different from each wallet and also which one that suit them, Let's spread about this so another people will learn crypto and keeping their asset in the right way depends on their experience!

[Crypto123 0]

3 hours ago, doriahailee said:

Good work for making this post mate, So people will understand different from each wallet and also which one that suit them, Let's spread about this so another people will learn crypto and keeping their asset in the right way depends on their experience!

Thank you for this encouragement, this is what I try to do in this forum, everyone should work to spread useful and good information so that everyone can benefit. I hope all members do this.

[doriahailee 643]

1 hour ago, Bololo said:

I really like this article. I prefer a cold wallet. To be precise, this is better because the hardware portfolio is the safest.

Me too mate but as we i said before, Some people was still new and the best way to store their crypto was through website wallet, It's giving them time to transition from web to cold wallet over time, For now let's tell new people this post so they can understand the different between it and which one suit them.

[Crypto123 0]

11 hours ago, BitCryptoCoin said:

Out of the whole wallets, I prefer cold wallets and Ledger Nano to be precise. They are the safest at to store crypto.

Ledger Nano is a really great wallet and I personally prefer it over all other wallets, it has great features and supports most currencies and is very safe.

[Crypto123 0]

4 minutes ago, Yousuf Siam said:

Desktop wallets provide high levels of functionality and control over your coins, whereas mobile wallets employ a simple, user-friendly interface. A key distinction can be made between two different types of software wallets: core wallets (full nodes) and SPV wallets.

Simplified Payment Verification (SPV) This is what these characters mean. Yes, there are experts who prefer downloading a full node to verify transactions themselves, but regular users are satisfied with this. Thank you for this important addition. I always like members to add new information on my topic.

[Crypto123 0]

39 minutes ago, kabilkumar said:

The concept of the mobile wallet is the same as an online wallet except for it works only on mobile devices. Basically, there is a cryptocurrency wallet application in the Google Play store and Apple store which works on mobile devices only. The mobile wallet is getting famous day by day because of mobile traffic. We all know that the majority of people are already shifting from computer to mobile, that’s why people now prefer to have a mobile wallet for cryptocurrencies.

Not quite my dear, the Internet wallet does not give you a private key in order to keep it, but the mobile wallet gives you a private key in order to keep it for you and this is an important difference and makes the mobile wallet a little safer than the internet wallet.

[Crypto123 0]

12 hours ago, Goodcoin said:

This article is a great one. Cryptocurrency wallets are essential for keeping cryptocurrencies. I prefer using hardware wallets because they are the safest.

 

1 hour ago, Zahra001 said:

I additionally recognize the wallets which you stated, but to write an in depth article and proportion useful like this for individuals may be very helpful, thank you very a lot for sharing.

Thank you, yes this has benefit and benefit everyone, and everyone should make an effort and share information to improve this forum. I presented several types of wallets for everyone to recognize, but I prefer hard wallets.