More and more people are joining the world of cryptocurrencies and tokens. Its popularity is ever growing. New crypto users are usually generated through the use of online platforms and their first form of storage is almost always online or on their desktops.
However, there are two ways a person can opt to store their cryptocurrencies. One is through hardware wallets and the other is software wallets. Both wallets give you the option to store your digital assets safely and later use them. So this article will help you decide which wallet is best suited for you.
Hardware wallets also known as cold wallets
You can store your digital assets on a hardware wallet. These wallets are physical devices that resemble a hard drive. However, these wallets are completely offline and therefore safe from hackers. The method of storing crypto in these wallets is known as cold storage because you transfer your digital currency from your online computer to your offline hardware wallet.
Once stored on your cryptocurrency hardware wallet, your crypto will no longer be on online servers. This is why hardware wallets will provide you with the maximum security. Cyber criminals can’t hack your digital currency if it is not online. In fact without the internet hackers are absolutely useless.
Through using hardware wallets, you also do not have to rely on the software and security of a third party provider. You can sleep easy knowing that, your crypto is right next to you.
However, be careful while purchasing your hardware wallets. You should only by your hardware directly from the makers or from reputable sources. If the hardware wallet is compromised by the supplier in any way, you could lose your digital assets. You have to be careful there are fake and knock of products in the market as well.
Another wallet, which you can use to store you digital assets is a software wallet. These are virtual programs that you download to your computer system. You require a password to access your cryptocurrency from it since the wallet is encrypted. As with hardware wallets, you have the ability to restore and retrieve coins by using a recovery phrase in the event that your password is lost or your device is damaged or hacked.
The biggest problem with these wallets is that they are still connected to the Internet, and are vulnerable to any malware or virus that might be hiding in the background. Any recovery phrase or passcode that might be displayed on your computer may be viewed and filmed by a hacker. Although extremely unlikely, there is still a small amount of danger that you must be familiar with. However, in reality, software wallets are far more open and convenient for users to exchange and send currencies. All you need is a passkey for the software, and the user interface makes it incredibly easy to submit and exchange cryptocurrencies.
With existing desktop, smartphone and online wallet apps, there are even more choices to choose from when determining which software wallet is best for you. Protection remains the top priority for many users, discouraging them from using desktop or online wallet apps that remains highly hacking-prone when linked to the Internet. Another thing to consider when considering software wallets is which coins it can hold. There are some wallets that store all coins, while some are specially made for those coins.
So which wallet should you choose?
When choosing a digital currency wallet, whether it’s hot or cold, protection should be your first, second, and third priority. For that very reason, I’m going to recommend that you pick a cold storage wallet. However, if you’re totally new to the crypto scene and don’t spend heavily in digital currencies, you can opt for a hot wallet to learn to trade. But if you start investing a lot of money in the world of crypto, you are probably better off with a cold wallet!
OPOLO hardware wallet
One of the best Hardware wallets in the world of cryptocurrency right now. Check out why you should buy an OPOLO hardware wallet.