For some, deciding what wallet or storage device to use when acquiring funds for your crypto casino account using cryptocurrencies like Bitcoin, Ethereum, Ripple, or any other digital coin may seem like a complicated process. However, the procedure couldn’t be easier.
Luckily, our team of digital currency and gambling experts created this guide to highlight everything you need to know about the different types of crypto wallets.
A crypto wallet can store digital coins, like how a bank account or payment sharing apps like Venmo and Revolut hold fiat currency. You will only be able to send, receive, and purchase cryptocurrencies if you have a wallet.
There are many different types of crypto wallets, each of which has its pros and cons. Below you will find detailed summaries of the different options for storing digital coins and how each might match your needs when funding a casino account.
Hardware wallets, also known as cold wallets are physical devices that allow you to store your cryptocurrency offline. These types of crypto wallets are the most secure that you can find, as there will be no internet access to these devices. This means that you can avoid the likes of malware, phishing sites, and cyber-attacks.
These types of wallets will also usually deal with many different types of cryptocurrencies at the same time. This makes for a great level of convenience. With just one recovery phrase, you can back them all up easily.
Hardware wallets are usually just small plug-in devices that look like a typical USB stick. The idea behind the hardware wallet is to store your private key and not the cryptocurrencies themselves. Therefore, using a hardware wallet means that you will be able to unlock your blockchain address where the assets are stored.
You can also use hardware wallets to sign and confirm blockchain transactions. There are a few different popular types of hardware wallets. Brands like Ledger and Trezor have traditionally been the most popular options. You might also come across some up-and-coming brands that might fit your needs once you take the time to do some proper due diligence.
There are different types of companies that provide hardware wallets. To make sure you are only dealing with reputable hardware providers, here are a few components that you should make sure are present before proceeding any further:
Also called hot wallets due to the connectivity to the internet, software wallets come in many different forms. These include online wallets, mobile wallets, and desktop wallets.
Just like with cold wallets, there are many strengths and weaknesses of using hot wallets. Once you weigh up the different variables, you can then decide which type of crypto wallet is going to be most suitable for what you need it for.
Online wallets are accessed on browser-based platforms. They will often be the wallets that you have on a crypto exchange or a gambling site and exist purely in digital form. Most types of wallets are accessible from popular web browsers such as Chrome, Firefox, or Microsoft Edge. Be sure to check for compatibility with your browser of choice before committing to an online wallet.
You’ll come across both hosted and non-hosted online wallets. Hosted wallets keep their private keys stored within the server (or host) itself, making them a target for DDOS attacks. This means less responsibility for keeping files on your devices, which may be misplaced, targeted by malware, or stop working.
Non-hosted wallets are accessed from a key or string of letters and numbers you will have to record yourself. This means that you’ll always have control over who accesses funds associated with that wallet. However, be sure to always keep all keys and codes associated with your wallet safely stored. Once lost, you may lose access to your digital wallet forever.
Online wallets will be the least secure, but they are a convenient way to use your funds and will be ideal if you are dealing with small quick transactions. Additionally, if you're someone who tends to misplace your keys or thumb drives, having everything stored digitally might be the right choice for you.
Mobile wallets are very similar to what you see with desktop wallets but are accessed through apps installed on your mobile device or tablet. Much like with online wallets, different mobile wallets come with varying levels of security.
For instance, some apps will only require you to enter a preset password to access your funds without any additional levels of safety. Others will generate a one-time-key that grants you entry to the data files and funds. Finally, some apps will conduct transactions by using QR codes, which is very convenient.
There is a decent level of flexibility when you use a mobile wallet, and they are a bit more secure than an online wallet. You still need to be aware of the potential risks that are associated with these types of crypto wallets, such as mobile viruses or losing the device itself.
Some popular mobile wallets include Mycelium, Coinomi, Cash App, Google Wallet, Android Pay, Venmo, and Revolut.
Desktop wallets are those wallets that require you to download software onto your computer. Each operating systems will have different types of software for you to use.
A lot of people have more peace of mind storing their crypto funds on a desktop wallet than just keeping them in an online wallet. Desktop wallets are one of the more secure types of hot wallet storage options.
This is because you do not have to deal with any third party, as well as get a good level of anonymity and privacy.
Be sure to check the integrity of any files claiming to be desktop wallet apps and check them with anti-virus software to ensure that you are not going to be exposed to any security issues. Additionally, you will want to back up your computer regularly to make sure that none of your keys or files can be potentially lost forever. Some of the most popular types of desktop wallets include Electrum, Exodus, Guarda, Armory, Atomic Wallet, and Jaxx Liberty.
There is a long-running debate about what type of crypto wallets are going to be the best option. There is often no definitive answer you can get for this question as each type has its advantages and disadvantages depending and highly depend on what you intended to use them for. Usually, different people are suited to different solutions and ultimately, they’ll choose the appropriate type of crypto wallet depending on what sort of situation they are in.
The main difference between cold and hot crypto wallets is the level of security that you are looking for when it comes to your crypto assets.
Hot wallets are ideal if you are looking for a very simple and quick approach to starting to handle cryptocurrencies. The process is as easy as creating an account or downloading an app or some software. They are going to be the choice for everyday users of cryptocurrencies. It allows people to quickly use crypto to conduct transactions.
It is usually not advised that you store significant sums of crypto funds in a hot wallet. This is because they will be exposed to certain types of security threats. Therefore, you’ll want to go for a cold wallet if you have significant sums of crypto assets that you wish to protect.
Cold wallets are the more secure option as they do not have a connection to the internet. These are physical devices that you can keep safe and sound from potential hackers and scammers.
While there is a great level of security, there will be a certain amount of impracticality if you are using the crypto assets regularly. This is because the transfer process takes a lot longer. If you have crypto assets that you want to store for the long haul and not use regularly, then cold wallets are a good shout.
Ultimately, it will be your decision as to which type of crypto wallet you decide to go for. You’ll need to figure out what your exact needs are when it comes to your crypto assets.
Start researching the available options for the crypto wallet that you are looking for. Whatever the option might be, you’ll want to take every precaution to make sure that you are keeping the security of your wallet as safe as possible.