Cryptocurrency is in use for over a decade now. A lot of people around the world, who have some interest in investing and trading, got into the crypto market. Usage of trading platforms, as well as crypto wallets, is increasing likewise as a necessity to purchase, hold, and sell cryptos.
Though, irrespective of its huge popularity and use, some people, recently joining the market, still don’t have the correct knowledge to use appropriate platforms and wallets and some are also having negative experiences as a result of it.
Having a thorough idea about these things before putting your money in the volatile crypto is essential. So, here in this article, proper guidance of crypto wallets, basically desktop wallets and their role will be discussed to make the whole process easy for you.
Crypto wallets: Crypto wallet is an online storage facility, medium, or physical storage device that keeps the private key and the public key that you use to access, buy, or sell cryptocurrencies.
Cryptocurrencies or the Blockchain code that we hold as our crypto holdings in the Blockchain medium are not directly stored in these wallets but, the keys are kept there securely and they are the only medium to access those cryptos in the Blockchain.
Several types of crypto wallets are categorized into two main types that are hot and cold wallets.
- Hot wallet: Hot wallets require internet connection to function. As a result of their direct internet connection, they are very much prone to cyber-attacks however, they are convenient and less time-consuming to use.
- Cold wallet: Cold wallets don’t remain directly connected to the internet so, they are the safest types of wallets as they are not prone to online scams. These wallets generally come in a hardware device form.
Desktop wallet: Desktop wallets are crypto storages that are installed and run on a desktop or a laptop. But, the desktop wallets don’t require a direct internet connection. They store your private key and public key in your hardware device but, they are not easy to get in touch with online scammers. So, you can say that a desktop wallet sits between a hot wallet and a cold wallet.
The Benefits And Convenience of A Desktop Wallet
- In the matter of security of your crypto holding, these wallets are reliable because they are not connected to the internet directly. As these wallets are installed on your computer offline they are free of the fear of getting hacked online.
- These wallets store your private and public keys in your computer so they are convenient to use at the time of transaction and don’t take much time.
- Some desktop wallets offer the facility to trade directly from one wallet to another.
Functioning of A Desktop Wallet- Points To Note
The work method of the desktop wallet is very safe as it has a two-factor authentication system and login pin. You can get these wallets on the respective currency’s official websites that you want to trade and you have to download and install the wallet on your computer. To get a reliable desktop wallet to trade the number one cryptocurrency bitcoin you can register here.
Once installed, you can add a security pin to the wallet to make it safer. At the time of the transaction, you will need a stable internet connection to process your transactions. The wallet will have your private key that will work as a digital signature to sign and confirm any transaction.
Should You Use A Desktop Wallet?
A desktop wallet is like a safer version of a hot wallet. Hot wallets are very convenient but risky. A desktop wallet also provides convenience to you but, it is not risky as it is not connected to the internet like a hot wallet. So, when you are in search of a wallet that makes your crypto trading easy while minimizing the risk, a desktop wallet is a good idea to go for.
Conclusion:
When you are really into the crypto market and want to make a profit out of it, choosing the best wallet for you is something the most important. Therefore, consider understanding the information given here and find the best crypto wallet for you.