It also monitor your balance, if you want to own cryptocurrency it is imperative to have a wallet.
You can store your coins on the exchange, on a local wallet on your computer, on a cloud wallet, on a paper wallet, and also on a hardware wallet.
There are many types of crypto wallets, on the market, thus mostly can be broken down into 3 main categories; software, hardware, and paper.
Software wallets can be easily downloaded and installed on a Pc, Mac, laptop or even a mobile device, the main downside here is the fact that they can be used only on that particular device, most of them can provide good security, but it's not full-proof.
Also, you can store your user keys, using a cloud wallet, switching to a wallet online can be a solution, because you can access the data from any computer or device and also at any giving time, although this can represent a security risk, most cloud-based wallets will store your keys online and therefore can make you an easy target to hackers, let's not forget the number one philosophy of the decentralised blockchain system, it is to get rid of the middleman.
Also see: Tips To Trade The Volatile Crypto Market
Pc/ Mac/ Laptop wallets are considered reasonably safe, acting on the same basic principle, thus they can still represent a security risk if you are transitioning and storing a large amount of money.
Mobile wallets can have there a dedicated app, are way smaller than a desktop one and many can also present you with the option of backing up your data.
Cloud wallets are handy giving the possibility to access your data from anywhere, although, most of the times they will store your security keys online.
All of the above types of wallets can represent a security risk if you become a target to viruses and hackers.
Also, most people forget to back up their data, and or your hard drive fails or your phone is damaged or lost, you can lose access to your wallet.
Also see: Beginners Guide To Cryptocurrency
You can also use a paper wallet, by righting your keys on a piece of paper, or a notebook that you can carry around with you at all the time, but the biggest downside is the fact that if you lose it, once again you can be a target by hackers, and it can be a big security risk.
Hardware wallets are slightly different from the software ones, because they store the access keys, on a piece of technology, identifying itself with an USB drive, you can also make transactions online and which in turn can offer better security because the keys are stored offline rather than online, giving you total and free access to your private keys.
Hardware wallets come in many shapes and sizes, and differ in price. Thus they represent the most secure and reliable way to store your private keys at any given time.
If you are new to the Cryptocurrency world and would like to open an account we recommend Cex.io.
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