The different wallet types

A digital currency wallet is nothing more than a kind of electronic wallet where you can store your coins. Wallets are generating private keys to gain access to the wallet as well as to send payments. We differentiate between 5 different types of wallets. All in all, we would like to introduce you to the Online Wallet. Online Wallet In this type of wallet, the private keys are stored on a server that is controlled by an external provider. The advantage here is the availability, but a disadvantage can be caused by the reliability of the provider. If one of these providers is suddenly offline or even completely disappears from the scene, all your stored coins are lost. That is why it is particularly important to inform yourself in advance. For this reason, our trusted online wallets include Binance, Cryptopia Bitcoin.de, Eobot and Litebit. With this providers, we can guarantee years of experience that are reputable professional companies. Bitcoin.de is an initiative of Fidor Bank AG where Bitcoin, Bitcoin Cash, Etherum and Bitcoin Gold can be bought and sold at any time. At the other Exchanges, you can store a variety of digital currencies. These are the world's largest and most successful Exchanges for a long time. Micro Wallet This type of wallet is mostly used by free digital coin providers. It is very similar to a classic online wallet. However, in this type of wallet, earned coins are first stored at one of the respective providers in order to synchronize them with the blockchain in retrospect. Here, a certain volume of the appropriate currency must be reached before an automatic withdraw occurs. The automatic payout is therefore the only advantage of this type of wallet. Manual withdraws are also available. Desktop Wallet A desktop wallet is installed directly on your PC using software. This will download the entire blockchain of the corresponding coin to your computer. So who, for example, owning a Bitcoin Core Wallet, has stored all the transactions that have ever taken place on his computer since the invention of Bitcoin. The important thing is to encrypt your wallet and keep the private key safe. Ideally, you save your wallet, as well as a backup of those and the associated key to an external disk. So you can be sure that you can always access your wallet. The downside to this type of wallet is that a computer which is infected with malware while encrypting and backing up the wallet may result in the loss of your entire bitcoin inventory. Therefore, it is a particularly responsible use of your own PC, as well as the respective activities on the Internet the "NON PLUS ULTRA" to ensure the security of his electronic wallet. Mobile Wallet This type of wallet is particularly suited for doing digital currency transactions anytime, anywhere. As the name implies, wallets are installed on a smartphone where the private key is also securely stored. Especially with this type of wallet is that only the necessary for the transaction part of the block chain is downloaded. Logically, the entire blockchain would blow up the memory of any smartphone user. However, this is sufficient to ensure a secure transaction. Common providers include Jaxx, Bitcoin Wallet and Xapo. In addition, an Internet-based backup copy is saved. Hardwarewallet Hardwarewallets are still very rare. The big advantage they offer is that the private key is stored on an encrypted electronic medium. For example, To transfer bitcoins from a hardware wallet, you need a SecurityCard that corresponds to a password table. Each character in the Alpabet (big and small, including the numbers 0-9) is assigned to certain characters. To make a transaction, you must enter four random characters from the password table. Subsequently, a transaction is carried out by the security card. Paperwallet Last but not least, we would like to introduce the so-called Paperwallet. Providers of this type of wallets allow the creation of e.g. a bitcoin address with two QR codes. One of them is to be seen as the receiving address, the other as the sending address, which contains the private key. The advantage of a paperwallet is that the private keys are printed out and can only be kept offline. So if there was no malware here during the compilation, it is a 100% secure Wallet!

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