STACH Educational Series #3: Understanding your Cryptocurrency Wallets.

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With the constant rise of Bitcoin and other cryptocurrencies, more and more people are investing in this space and many may have a hard time getting to know the kind of wallet to use for the purposes of saving their coins.

So this article is meant to talk about some of these wallet types. For many who are not doing bitcoin, they may not really worry about getting any of these wallets, but it is better you know what type of wallet does what.

WHAT IS A CRYPTOCURRENCY WALLET?

A wallet in the Cryptocurrency space is a digital wallet that one can use to store, send and receive Bitcoin, Bitcoin Cash, Litecoin, Ethereum, EOS, IOTA and every type of cryptocurrencies.
Since it is a digital wallet, it doesn't exactly “store” your money like a real world wallet does; instead, it saves your public and private keys which in turn helps you send and receive money and process transactions online.

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TYPES OF WALLETS.

There are quite some few wallet types that you may be familiar with, but we will look at them and get a clear understanding of the various types.

• Mobile or Desktop Wallets.- This type of wallet are quite one of the popular types of wallet that always comes as a first choice for many.
  These types of wallet are downloaded and installed on a single PC or Laptop and can only be accessed from that one device. They are actually considered to be much better in terms of security thought it can be very inconvenient because access to the wallet can only be done through that particular device from which you installed the wallet. An example of this type of wallet is MultiBit and Armory.

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The safety of your wallet is your sole responsibility. Guide it as you would your valuables because it is.

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• Online or Cloud Wallets.- This type of wallet is easiest to create and use as it can be accessed from any server anywhere in the world once there is an internet connection. It is a model that allows the creation of accounts on exchange services and mostly for the purposes of quick transaction.

• Paper Wallets.- This type of wallet is the type that where users print out their public and private keys on a piece of paper. Paper Wallets are more secure than using software or online wallets because the users physically have their keys printed on a piece of paper and it is an offline type.

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The safety of your wallet is your sole responsibility. Guide it as you would your valuables because it is.

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• Multi-Signature Wallet.- This type of wallet is one where two or more private keys are required to spend from the address. It is usually made by sharing public keys between groups of individuals to avoid human errors and provide a concrete security. It is often referred to as a democratic wallet accessible by two or more people.

• Hardware Wallet.- These kinds of wallets are the types that are done on physical devices like the USB stick that you have to plug in whenever you want to do a transaction. An extremely convenient to use type with no requirement to understanding the complexity of the technical details. TREZOR or Ledger wallet are some example.

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