Types of Crypto Wallets - Which One Is Best For Me?

Top Properties of A Secure Wallet

Regardless of which wallet type you choose, here are a few things to consider before putting your funds into a crypto wallet.

You Own Your Keys

Wallets that don't store your private keys are safer than those that do. The wallet you choose should enable you and you only to control your private keys, which means only you have the ability to move your funds. Large-scale data breaches that result in lost user funds are a potential threat for wallet providers that store this information.

User Support

If you run into an issue with your wallet, who can you ask for help? In some cases, community members help. However, you also need to be aware of scammers who might try to steal your funds. Wallet providers that provide user support themselves are generally a better choice.

Active Development

When was the latest release of your crypto wallet? If it's been several years since an update, the wallet may be deprecated, which could mean it is vulnerable to certain security threats. Wallets that remain up-to-date are generally more secure and feature-rich. Plus, they likely support newer protocols and coins than older wallets.

Wallet Types

Desktop Wallet (Software)

A desktop wallet is a cryptocurrency wallet that users download to their desktop devices. Most desktop wallets support a variety of operating systems, such as Windows, macOS, and Linux.

Advantages
-Extremely safe if your computer is disconnected from the internet.
-Generally have the most advanced UI/UX of any wallet type

Disadvantages
-Least portable option among all crypto wallet types
-Not as safe if connected to the internet (becomes a hot wallet), could be a target of malware and viruses
-If something happens to your hard drive and no backup of wallet info exists, you lose your funds

Mobile Wallet (Software)

A mobile wallet is a cryptocurrency wallet that users download to their mobile devices. Most mobile wallets support both Android and iOS operating systems.

Advantages
-As the name suggests, very easy to use from anywhere
-Easier to use for P2P payments at retailers + physical stores

Disadvantages
-Security issues like mobile malware and keyloggers are problematic
-Generally less secure than other wallet types
-If something happens to your phone and no backup of wallet info exists, you lose your funds

Hardware Wallet

A hardware wallet is a cryptocurrency wallet that generally includes a small physical device along with a USB cable. Users connect the hardware wallet to their desktop or mobile device.

Advantages
-Safer than other wallet types
-Best option for storing larger amounts of crypto

Disadvantages
-Much more expensive than other wallet types
-Requires an additional device to connect to/ not good option for frequent payments
-UX/UI tends to take longer for new users to understand

Paper Wallet

A paper wallet is a cryptocurrency wallet that includes relevant information (e.g. public address, private key, and seed phrase) written on paper.

Advantages
-Always offline, so it's practically untouchable by hackers
-Not stored by any third-party server or personal device

Disadvantages
-Not practical for sending or receiving crypto on a frequent basis
-Easier to lose compared to a mobile or desktop device
-For people (e.g. loved ones) who are unaware, it's easy to mistake a piece of paper as something to be thrown away compared to physical devices

🔑💰Find A Komodo (KMD) Wallet

KMD is the Komodo community currency. You have a number of great options for storing KMD, including all of the wallet types mentioned above. Check out our wallets page and find a supported wallet.

Komodo Wallet is a non-custodial multi-coin wallet and atomic swap DEX. Supported on both desktop and mobile devices, store KMD as well as BTC, ETH, and many other coins in your own wallet. When you're ready to trade, Komodo Wallet supports cross-chain swaps. Your keys, your coins.

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