In this digital world, we all concern about saving money in the bank as we face several security issues and fraud factors. This makes us being in the state of conscious every time. To be the solution and give us a secured platform, digital money wallet has been launched to save our cryptocurrencies. Cryptocurrency is the digital money, was introduced in 2009 by Satoshi Nakamoto and named the first Cryptocurrency as “Bitcoin???. There are several types of cryptocurrency wallets to allow users to store and manage their digital money in various methods. However, every people came with the one top question. That is how these wallets are secured. Moreover, before going deep into the security factors, it is helpful and useful to understand the types of Cryptocurrency wallets that exist in today’s commercial market.
These wallets can be classified into 3 types:
1. Software wallets
2. Hardware wallets and
3. Paper wallets
Software wallets again sub-classified into Desktop; Online; and Mobile wallets.
- Desktop Software Wallets: These wallets are designed in such a way it can be downloaded or installed only on desktops and laptops. This type of wallets offers a high level of security with their accessibility is limited only to the desktops in which they are installed. However, if the system is hacked or affected by the virus, the user can lose all their money.
- Online Software Wallets: This type of wallets works in cloud-based. Therefore, they can easily be accessed from any computers and from any geographical locations. Apart from accessibility convenience, these wallets store the private keys online. These keys will be easily accessed by the third party and changes of hacking will be more of this type.
- Mobile Software Wallets: Unlike the above 2 types, these wallets will be downloaded and installed in smartphones through the application. These wallets can be accessed everywhere. The storage range of these types of wallets is much smaller when compared to the traditional desktop to store the keys.
Hardware Wallets: Hardware wallet will slightly differ from the software with the way of storing the private key. The role of hardware wallet is to store user’s private keys in hardware devices like USB. Therefore, as the key is stored offline, it adds value to the security aspects. Moreover, hardware wallets are easily well-matched with several online interfaces and have the capacity to handle different digital currencies. These types of wallets are used for simple transactions. As a client, you simply need to connect to the device to any PC, which is associated with the web before entering a PIN, exchange the cash and simply confirm the transaction. Your digital money is kept disconnected by the hardware wallets and hence, the risk factor or security concern is likewise significantly lesser.
Paper Digital Wallets: This type of wallets is very user-friendly and ensures a high level of security. Paper wallets are just the print copy of users’ private and public key. However, it can likewise refer to a software application intended to create the keys safely before printing.
Sweeping Process with paper wallets: Using paper wallets is relatively simpler when compared to above 2 wallets. IF you want to transfer the cryptocurrencies to your paper wallet, you just transfer money from your software wallet to public address that displayed on the paper wallet. Similarly, if you want to spend or withdraw money, you transfer the money from paper wallet to your software wallet. This process is known as “SWEEPING???. Sweeping can be done manually just by entering private keys or scanning QR code.
The security aspect mainly depends on two factors:
• The type of wallet you use – hardware, paper, online, desktop or mobile
• A chosen service provider
Investing in digital money is a smart business idea; however, utilizing a secured wallet is unavoidable. BSEtec offers you a secured wallet with effective features like 2-factor authentication; Auto rejection of duplicate payments; Auto generation of a new key for every new transaction; Optional logout; Recurring billing & invoicing; and Investment advice. Moreover, buy and sell your cryptocurrencies through our Bsetec exchange platform, with the rapid settlement. Furthermore, we have also integrated Bitcoin and other Crypto coins as a payment option on various mobile devices. Visit the official website www.bsetec.com to get more information about Cryptocurrency.