A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Bitcoin or any other cryptocurrency, you will need to have a digital wallet.A cryptocurrency wallet is just like a bank account which is used to store, receive and send your digital currency to another wallet account or use it for the shopping purpose. Cryptocurrency wallets are software programs that store your public and private keys and interface with various blockchain so users can monitor their balance, send money and conduct other operations.
Types of the wallet:-
There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper.
1. Hardware wallet
2. Mobile Wallet
3. Desktop Wallet
4. Online Wallet
5. Paper Wallet
The hardware wallet is same as your regular wallet except it consists of a digital device to operate your account. wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. hardware wallets make transactions online, they are stored offline which delivers increased security. These days hardware wallets are said to be the best cryptocurrency wallet to store the coins, as it is considered to be more safe than any other wallet.
FEATURES OF HARDWARE WALLET:-
- immune to computer viruses that steal from software wallets
- Hardware wallets are one of the most secure ways to store Bitcoin and other crypto currencies.
- Stores your private keys offline away from hackers
- Added security iwith Pin Code and Advanced Passphrase – allowing creation of hidden wallets.
- Keep multiple crypto currencies on the one device
- can be used securely and interactively, as opposed to a paper wallet which must be imported to software at some point
Best Hardware Wallet:- best cryptocurrency wallet
1. Ledger Nano S(58€):-
Screen; two buttons that you need to press simultaneously to confirm a transaction, which prevents hackers from hacking into it and confirming payments; PIN code; box ships with an anti-tampering seal.
Ledger Nano S is a Bitcoin, Ethereum and Altcoins hardware wallet, based on robust safety features for storing cryptographic assets and securing digital payments. It connects to any computer (USB) and embeds a secure OLED display to double-check and confirm each transaction with a single tap on its side buttons.
LATEST GENERATION HARDWARE
When you own cryptocurrencies, you need to protect your confidential data and the access to your funds. With Ledger Nano S, secrets like private keys are never exposed: sensitive operations are isolated inside your hardware wallet within a state-of-the-art Secure Element, locked by a PIN code. Transactions can’t get tampered with, they are physically verified on the embedded screen with a simple press of a button.
PAY AND AUTHENTICATE
Ledger Nano S includes Bitcoin, Litecoin, Ethereum and Ethereum Classic companion apps, and other blockchain-based cryptocurrencies. You can send and receive payments, check your accounts and manage multiple addresses for each currency from the same device. Nano S also supports the FIDO® Universal Second Factor standard that simplifies the authentication process on compatible online services such as GMail, Dashlane, Dropbox or GitHub.
TREZOR Model T is the next-generation hardware wallet, designed with experiences of the original TREZOR in mind, combined with a modern and intuitive interface for improved user experience and security. It features a touchscreen, faster processor, and advanced coin support, as well as all the features of the TREZOR One.
TREZOR One is the most trusted and ubiquitous hardware wallet in the world. It offers an unmatched security for cryptocurrencies, password management, Second Factor, while maintaining an absolute ease-of-use, whether you are a security expert or a brand new user.
SatoshiLabs is the innovator behind some of the most pivotal and influential projects with Bitcoin and cryptocurrencies, mainly TREZOR, the world’s first cryptocurrency hardware wallet, or CoinMap.org, the primary resource for bitcoin-accepting venues. View source
FAQ of KeepKey :-
- Is KeepKey open source?
KeepKey’s firmware is 100% open source.
2. Can I update the KeepKey firmware on the device?
Bitcoin is a young technology that is rapidly changing. We designed KeepKey so that it can keep pace with those changes, without sacrificing security to accomplish this goal. Before any firmware upgrade is done, all private keys are deleted from the device’s flash memory. The private keys are only restored after a firmware upgrade if the newly installed firmware is official and is correctly signed by KeepKey, LLC.
3. Can I run my own custom firmware on the KeepKey?
You can make modifications to our firmware or create your own, then run it on the KeepKey. As a security precaution, firmware uploaded to the KeepKey that we do not distribute will show a warning message during the boot sequence to explain that it is running unofficial firmware.
4. Where can I buy KeepKey?
You can purchase KeepKey from our website using any major credit card, PayPal, or Bitcoin. KeepKey is also available on Amazon.
5. What operating system does the KeepKey use?
KeepKey does not have an operating system like your computer or mobile phone. Instead, the program environment is what is known as “bare-metal.” The KeepKey application executes directly on the hardware, without any supervising application or operating system. View Source
4. Ledger HW.1($17) :-
But Ledger Nano S is a Bitcoin, Ethereum and Altcoins hardware wallet, based on robust safety features for storing cryptographic assets and securing digital payments. It connects to any computer (USB) and embeds a secure OLED display to double-check and confirm each transaction with a single tap on its side buttons.
you need to protect your confidential data and the access to your funds. With Ledger Nano S, secrets like private keys are never exposed: sensitive operations are isolated inside your hardware wallet within a state-of-the-art Secure Element, locked by a PIN code. Ledger Nano S includes Bitcoin, Litecoin, Ethereum and Ethereum Classic companion apps, and other blockchain-based cryptocurrencies. You can send and receive payments, check your accounts and manage multiple addresses for each currency from the same device
The concept of the mobile wallet is the same as online wallet except for it works only on mobile devices. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile.
wallets are downloaded and installed on a PC or laptop. Desktop wallet is the same as you are having a file in your computer.The best desktop crypto wallet for you depends on your needs. For instance, if your are out to deal with Bitcoin alone and have no plan to diversify, you could look for the best Bitcoin wallets. But if you are into diversification where you deal with many cryptocurrencies, then multi-currency wallets offer better options to help you stay organized instead of running many wallets. They could also be less expensive for you.
Desktop wallets are further classified as single asset or multi-asset depending on whether they support only one cryptocurrency or many.
online wallets store your private keys online and are controlled by a third party which makes them more vulnerable to hacking attacks and theft.
The paper wallet means that you will get the private key of your cryptocurrency. To make the transaction, you need to type the complete key. In the most specific sense, a paper wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoins offline as a physical document.
Characteristics of Cryptocurrency Wallet
The software comes in different forms such as:
An application that directly installed on the desktop or laptops and phones.
Can be used as Web Wallet. Here the private keys are managed by a trusted third party. Some Web Wallet uses two authentications as like Google Authenticator. Here hacking your account becomes too difficult.
Watch-Only Wallet : Watch-only wallet helps to track all transactions.
Multi-signature Wallet : In Multisignature Wallet, multiple users have to log in with their private keys for transaction out of that public key wallet.
Brain Wallet : Brain Wallet helps to remember the public and private key regeneration.
Hot and Cold Wallet : The hot wallets are connected to the Internet but cold wallets are not connected. In General, we can say that hot wallets are software wallets and cold wallets are hardware wallets.