Forms of wallets – hardware, software, online, paper
Hardware wallet ( Trezor, Ledger)
It is suitable for storing higher value cryptocurrencies. It is a specialized device that protects your private key/seed in the digital environment from leakage or theft. One of the many protections, for example, is the need to press a button on the device to send cryptocurrencies, which no remote hacker can do.
Generally speaking, to store cryptocurrencies worth 20 thousand or more, it is already advisable to invest less than 2,000 CZK in a HW wallet. Our exchange recommends purchasing the Trezor wallet for several reasons:
- It is an open-source device.
- Trezor was the first company in the world to create a HW wallet and has the longest history.
- Trezor has never been hacked.
- It allows the management of multiple types of cryptocurrencies.
Software wallet for desktop, smartphone or as a browser add-on
It is an application installed on your mobile, desktop or as a browser extension.
They are usually free and are only suitable for managing smaller amounts of cryptocurrencies, up to about 20,000 CZK. You should always include a PIN with your SW wallet and securely write down the seed that the wallet generates, in case you lose your device.
Before installing a SW wallet, always verify that it is trustworthy. Read comments and reviews online from multiple sources. There are also fraudulent apps. Learn more in our article How to choose a cryptocurrency wallet (CZ)
The advantage is user-friendliness and frequent multifunctionality. They allow you to manage multiple cryptocurrencies and are free. These wallets can be accessed from any browser, but this is also their main disadvantage. Online wallets are not nearly as secure as mobile or hardware wallets. Always make sure to create a strong unique password and activate two-factor authentication through your phone (Authy or Google Authenticator app). It is also highly recommended to write out a seed from your wallet, which will not appear automatically. You need to find it in the settings.
The web wallet is suitable for storing smaller amounts for normal everyday use.
Choose your provider carefully. A commonly used wallet is Blockchain.com. You can find instructions on how to use it here.
Paper physical wallets
This is a very simple wallet that can be printed on paper. It contains a private key and one public address to which cryptocurrencies can be sent, both displayed as a QR code and text. These wallets are only suitable for storing cryptocurrencies and not for managing them more frequently.
You can generate a paper wallet online here, for example. However, there is a high risk of loss, destruction/damage to the paper deposit and a rather difficult process of withdrawing cryptocurrencies. We do not recommend using this wallet.
Did not find the answer?
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