We all have wallets where we store our money and other sorts of stuff to carry around and keep it safe from theft. But, still one cannot completely leave the chance of robbing the wallets, a similar case is that of a cryptocurrency. The question that stays in the mind is how far the system is reliable and secure enough to store the corresponding digital coins. Why is it so important to have a digital wallet to store digital currencies? Let's understand deep about the cryptocurrency wallet with this article.
A cryptocurrency wallet is one of the functionalities available alongside with the software package and well, it's not exactly a proper storage space! It's more than that and with a key (cipher key), the cryptocurrency is placed in as a digital code. Through these wallets, all the concerned sending and receiving of the digital coins are carried out. Well, such cryptocurrency wallets are available within the corresponding package itself or else a third-party wallet might be needed.
It's actually the key that is stored in a wallet and this wallet is actually a software program to interact perfectly with all the users. The keys are also of two types,
- Public key
- Private key
Both keys come into the system and let the users monitor the digital summary. Now that we did become familiar with the term "cryptocurrency wallet", we shall know the various types of the wallet,
- Desktop wallet
- Cloud wallet
- Mobile wallet
- Paper wallet
- Hardware wallet etc.
Each of them has its own characteristics and we'll give you a brief information about each of them. The desktop wallet is a storage-based wallet available and controlled using a personal computer. And you obviously need a pc to work on these wallets, the next one will be the cloud wallet which gives you the idea of its term itself. This one is purely based on cloud services where wallet will be stored in an online space. Due to this reason, the wallet will be vulnerable or prior to attacks.
A mobile wallet is accessible with a mobile or similar gadget via an application and it's a good option as one can carry out the tasks easily at any place using online services. Well, there are certain offline modes of wallet available in the market too and people opt such services as it is more likely to be secured from online threats. Paper wallets are more likely to fall under such categories where the details are stored in a creative manner with high security. Stored in the physical copy and then transferred to software using QR scanning just like the sweeping process. And the final one, hardware wallet which stores the wallet details in a micro-hardware device like USB's, and transferred by plugging in the device.
These wallets are however customizable and are available in the cryptocurrency-based MLM Software. Upon the requirements of customers, these wallets can be easily integrated, and interact with most of the supporting platforms.