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A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency and most coins have an official wallet. You’ll need to use a cryptocurrency wallet to use cryptocurrency. Some are created for a single cryptocurrency, some can be used for multiple coins, some wallets allow you to manage them manage yourself and some like those found on exchanges will be custodial.
Needlessly to say, there is a wide range of wallet types for you to choose from.
There are several types of wallets you can use including online, offline, mobile, hardware, desktop, and paper.
Full Node Wallet: A wallet where you control your private keys and host a full copy of the blockchain.
Custodial Wallet: Some wallets let you control your private keys, some are custodial (you don’t control your keys directly). Most exchange wallets are custodial wallets.
Desktop Wallet: The most common type of wallet. Typically an app that connects directly to a coin’s client.
Mobile Wallet: A wallet that is run from a smartphone app.
Online Wallet: An online wallet is a web-based wallet. You don’t download an app, but rather data is hosted on a real or virtual server. Some online wallets are hybrid wallets allowing encryption of private data before being sent to the online server.
Software Wallet: Any software-based wallet is a software wallet.
Hardware Wallet: Dedicated hardware that is specifically built to hold cryptocurrency and keep it secure. This includes USB devices. These devices can go online to make transactions and get data and then can be taken offline for transportation and security.
Paper Wallet: You can print out a QR code for both public and private keys. This allows you to both send and receives digital currency using a paper wallet. With this option, you can completely avoid storing digital data about your currency by using a paper wallet.
Coin-specific: A wallet that only works with a specific coin.
Network-specific: A wallet that can hold multiple tokens on a single network.
Universal / multi-asset / multi-coin: A wallet that can hold addresses from multiple coins. Please note that just because a wallet is “universal” doesn’t mean it holds every crypto asset. From exchanges to the best multi-asset wallet out there,
