Most Blockchains and cryptocurrencies are associated with a private

space for storing the user’s cryptographic keys or private data that

helps the user in sending and receiving the digital currency with the

others. These wallets are popularly known as cryptocurrency wallets

or crypto wallets. Such wallets digitally store a user’s public and

private keys and programmatically helps in sending and receiving

digital currency or sensitive information. Let’s explore the different

types of wallets and their pros and cons on the basis of the type of

device they are associated with.

1.5.3.1 Online wallets

Online wallets, as the name suggests, are wallets where the

cryptographic keys are saved to an online application and can be

accessed through a browser. It’s one of the most convenient ways to

store and use the keys on, as per the requirement. Some of the

examples of such wallets are Exodus, Ledger Nano X, Multibit etc.

Being available on the online websites, these wallets are prone to

security threats. Hence, most online wallets have strong password

policies as well as multi-factor authentication system that might

come in different combinations of password, biometrics, and OTP.

1.5.3.2 Desktop wallets

Desktop wallets are offline wallets that can be downloaded and

saved on a computer. We just need to make sure that the computer

is secure enough and password protected, also that it is not shared

with others. Desktop wallets are far more secure than the online

wallets; however, the data stored in such wallets are often not

portable.

1.5.3.3 Mobile wallets

Mobile wallets are similar to desktop wallets; however, the underlying

data is portable. Hence, they are the most popular form of wallets in

today’s world.

1.5.3.4 Hardware wallets