Types of wallets

There are 2 kinds of crypto wallets:

  • Online wallets
  • Hardware wallets

Online wallets:

Online wallet refers to any cryptocurrency wallet that is connected to the internet. Generally hot wallets are easier to set up, access, and accept more tokens. But online wallets are also more susceptible to hackers, possible regulation, and other technical vulnerabilities.

Pros:

  • Free
  • Quick access to your cryptocurrency (many hot wallets are accessible via your cell phone)
  • Easy to use, and user-friendly

Cons:

  • Online wallets by definition are connected to the Internet which means that your cryptocurrency is less secure (e.g. hackers, possible regulation, and other technical vulnerabilities)
     

Hardware wallets:

Hardware wallet refers to any cryptocurrency wallet that IS NOT connected to the internet. Generally hardware wallets are more secure, but they don’t accept as many cryptocurrencies as do many of the online wallets.

Hardware wallets also cost close to $80 USD, whereas online wallets are free.

Pros:

  • The most secure option
  • As it’s completely offline this provides a greater level of safety.

Cons:

  • Expensive to buy ($80 USD+)
  • Not ideal for quick or regular transactions (you will always have to take your cold wallet with you so you would be able to access it.)

Hardware wallets we recommend to use:

  • Trezor is a hardware wallet on which you can store bitcoin, ether, Dash, Zcash, Litecoin, Bitcoin Cash, Bitcoin Gold, and any ERC-20 token.
  • Ledger is another hardware wallet on which you can store 1185 crypto currencies, including popular currencies as bitcoin, ripple, Ethereum, bitcoin cash etc.