There are many different types of crypto wallets that all have their own advantages and disadvantages. Keep in mind that not every cryptowallet falls exclusively within one type of wallet. Many crypto wallets use multiple types of wallet techniques. For example, a Hardware Wallet can be a Hot or Cold Wallet. A Desktop Wallet can also be a Hosted Wallet. We have listed all types of wallets for you.
1: Cold Wallets
The private and public keys used by Cold Wallets are created on an internet-enabled device. All data is then stored offline and no internet connection is required. Cold Wallets are highly reliable and can efficiently manage large sums of money and all transactions.
Examples of Cold Wallets are: Ledger Nano X/S Plus, Trezor Model T and Coolwallet Pro.
2: Hot Wallets
Hot Wallets are crypto wallets that are created and stored on a device connected to the internet. These wallets use keys based on cryptography (the same technique as that used for crypto coins). These keys can be compared to a very complicated password. Hot Wallets are known for their ease of use, but they are considered less reliable than a Cold Wallet.
Examples of Hot Wallets are: Binance, Exodus and MetaMask.
3: Hosted Wallets
With Hosted Wallets, the crypto wallets are created and hosted on a different server that you no longer have control over. This is the main reason why Hosted Wallets are considered less reliable than Hot and Cold Wallets. With Hosted Wallets, a third party protects your wallet and it may be possible to take out insurance for your wallet.
Examples of Hosted Wallets are: Coinbase, Bittflyer and Mt Gox.
4: Hardware Cryptowallet
Hardware Wallets look like a USB Stick with an OLED screen and side buttons. All hardware Wallets can be connected to a PC and accessed through desktop apps. Hardware Wallets are more secure than Hot Wallets, but less secure than Desktop and Web Wallets.
Examples of Hardware Wallets are: Trezor, Ledger Nano X/S plus and SecuX W20.
5: Desktop Wallets
Desktop Wallets are software applications designed to store the private key of a wallet on a computer’s hard drive. Desktop Wallets are ideal for users who regularly send or receive crypto payments via their PC.
Examples of Desktop Wallets are: Bitcoin Core, Electrum and Exodus.
6: Mobile Wallets
A Mobile Wallet is a cryptowallet that stores information on a Smartphone. This is similar to a Desktop Wallet. Mobile Wallets often use QR codes for transactions. A Mobile cryptowallet can be sensitive to malware.
Examples of Mobile Wallets are: Mycelium, Coinomi and Rainbow.
7: Paper Wallet asCryptowallet
Paper Wallets are often set up when strict security measures need to be taken. A Paper Wallet is a piece of paper on which the private and public key are printed. Everything on the Paper Wallet is removed from a digital wallet and the network. No one can hack into a Paper Wallet or retrieve the keys unless they steal the physical piece of paper where everything is stored.
Paper Wallets have the disadvantage that there is no backup. When you lose the paper, you also lose the crypto assets that were stored on the paper. Paper is not a reliable storage medium. For this reason, numerous seed phrase backup tools are sold, for example a stainless steel or titanium plate on which you can engrave a private key.
8: Web Wallets Cryptowallet
Web Wallets can be used via an Internet browser. A Web Wallet cryptowallet can be hosted or unhosted. In general, Web Wallets are considered the least secure wallet. Web Wallets are especially suitable for small investments and fast transactions. The private keys of these wallets are susceptible to DDOS attacks and are often targeted by cybercriminals.
Examples of Web Wallets are: Metamask, Coinbase and Binance.
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