The selection of a wallet for the cryptocurrency requires clear understanding of the wallet type specifics available today. Such specifics contribute to the security of the crypto funds, as well as their availability. The features of the digital wallets also offer the specific benefits in the form of additional analytics and management tools. At the same time, these benefits may also result in the additional risks for their users.
Types of Wallets and Their Specifics
Cryptocurrency holders are able to select from the five main types of digital wallets. These wallets differ on the basis of their core features:
- Online wallet: offers access through a number of devices using internet connection and cloud technology. The convenience of the wallet also implies additional types of risks.
- Mobile wallet: works through an application installed on the smartphone. The security of the wallet largely depends on the security of the phone.
- Desktop wallet: requires installation on the personal computer. Similar to mobile wallet, the security of the desktop wallet depends on the security of a particular PC.
- Hardware wallet: includes installing private keys on an external device, commonly the USB drive. Such a wallet requires internet access only during authorization during the transaction, making it the most secure one from the previously mentioned types.
- Paper wallet: implies using a physical paper for recording keys. The recording may exist in the form of QR code for the subsequent scanning. Similar to hardware waller, its offline nature contributes to its security.
Foin wallet will combine the features of the mobile wallet and a desktop wallet with the cold storage features supporting safety and privacy of the transactions. The core benefit of the wallet stems from its ability to simplify the financial operations for the merchants accepting various types of cryptocurrencies. Merchants will be able to register using their email and the password with the set minimum security level. The system allows password restoration using the verified email. Verification option utilizes Google Authenticator.
Merchants are able to add users to their back office to ensure cooperation, while also managing the levels of their access and blocking them upon necessity. Foin wallet allows addition of the other vendors for the further cooperation. Each vendor receives a unique code for entering on the merchant’s website during the payment process. The wallet provides the history of transactions with an ability to return the transaction from the current balance. The merchants are able to select the types of cryticurrenices accepted, while also withdrawing funds in blockchain. Authorization process has an added level of security with the digital print of the merchant’s device. The merchants have to verify the new devices being added to prevent security breaches. Transparent Captcha protects against the phishing attacks. Foin wallet allows managing hot wallets, while also transferring funds to the cold wallets.
The selection of the specific type of waller requires consideration of the following factors:
- Security level
Security of a wallet depends on its exposure to the internet or potential access for the third parties. Hot wallets imply constant internet access, while cold wallets minimize such an access. The recommended strategy is to utilize the cold wallets for storing the long-term funds, while managing the short-term funds with the hot wallets. Such an approach will minimize the risks related with the large sums of cryptocurrency, while allowing flexibility with the frequent transactions.
Various wallets fall into different types of the core categories with the respective benefits and drawbacks.
Coin.Space wallet is a multi-currency wallet supporting Bitcoin, Ethereum, Bitcoin cash, Ripple, Litecoin, Stellar, and EOS. The wallet uses AES-256 encryption for the device on the client side. The wallet enforces BIP 39 encryption during wallet creation. The access to the wallet implies entering the 4-Digit log-in. Coin.Space wallet protects https websites from impersonation with the fraudulent certificates.
BitGo offers a business wallet with the cold storage features. The wallet includes institutional-grade controls, namely whitelists, spending limits, and multiple approval levels. The wallet supports over 100 cryptocurrencies and tokens. The accounts vary depending on the level in the organizational structure. Furthermore, the wallet also offers storage for fiat currencies.
Mycelium wallet is a single-currency Bitcoin mobile wallet offering a wide range of features. The wallet allows sending and receiving Bitcoins, while offering bank-level security. The wallet offers five types of accounts, namely Hierarchical Deterministic, single address, hardware, Bit ID, and watch only. The wallet has integration with Cashila, Glidera, Coinapult, and Trezor. The core features are the billboard, secure chat, privacy focus, and trader ratings availability.
Eclair Mobile is a single-currency wallet offering connection to Lightning Network for instant and relatively cheap payments. The wallet supports Bitcoin. ACINQ has developed Eclair mobile with the Electrum server support and routing synchronization.
Electrum wallet is a hardware wallet focusing on speed and simplicity, as well as the low usage of resources. The wallet ensures encryption of the keys, as well as recovery of funds with the added level of security. Electrum wallet utilizes the servers indexing Bitcoin blockchain, contributing to the speed of the transactions. The verification of the transaction history occurs with the SPV technology. The wallet also offers cold storage capability, while supporting the third-party plug-ins.
Armory wallet focuses on the security through cold storage and paper-backups. The cold storage and the distributed multi-signature technologies support the security of the wallet. Offline Bitcoin wallets imply complete avoidance of internet connection. The approach implies utilization of the watching only wallet during the connection to the web. Theft is possible only in case of the physical access to the desktop.
mSIGNA wallet support corporate-level scalability, simplicity, and speed of the transactions. The wallet supports BIP32, offline storage, multisignature transactions, paper backups, encrypted electronic backups, as well as multiple device synchronization. Ciphrex Corporation are the creators of the mSIGNA wallet. The wallet supports creation of multiple keys’ generation with the one-time master key backups. mSIGNA wallet allows account sharing as well as access from different devices, contributing to the utility of the wallet.
KeepKey wallet is a hardware-based wallet supporting multiple cryptocurrencies. The wallet offers the physical device with a display for the connection to the PC via USB port. The device supports generation of the private key, storage, and signing of the transactions. The process includes initialization and backup that ensure security of the funds and the transaction.
Ledger Nano S wallet
Ledger Nano S wallet offers a device with the OLED display for double-checking the transactions and confirming them. The wallet supports multiple currencies, while focusing on simplicity and restoration potential. The total number of cryptocurrencies supported by the wallet reaches 1100.
Trezor wallet focuses on convenience and security as its two core features. The wallet requires online connection for signing the transactions. Trezor wallet has implemented several layers of security measures, including firmware verifications, protected key operations, additional passphrase support, secure updates, reliable recovery, hardware seal, and write-protected bootloader. Trezor wallet supports a wide range of currencies including Bitcoin, Litecoin, Etherum, Dash, and Z Cash.
The analysis of the cryptocurrency wallets includes a wide range of factors, such as security, mobility, user-friendliness, convenience, and style. The wallets might be available free of charge, as well as the cost reaching $99. Security levels differ based on the specific wallet type and its features. The mobility of the wallet depends on the type of the wallet, similar to style and convenience. Cryptocurrency wallets falling into various categories have their respective benefits and drawbacks, requiring careful analysis of the core factors prior to the selection of the most suitable wallet.
The variety of wallets is particularly broad in the modern day. However, the merchants value the combination of security, simplicity, and utility. Fopay wallet combines these features with the specific focus on security with the cold and hot wallet management, as well as the ability to work with various cryptocurrencies in a single wallet. Vendor management of the wallet is intuitive and understandable focusing on efficiency and effectiveness of the operations. Fopay wallet is responsive, secure, and useful. These features contribute to its superior position amongst the other available options.