Are Blockchain Wallets Safe?

April 26th, 2018

Blockchain technology and cryptocurrencies are becoming more popular every day, but before you start owning any, make sure you have a wallet to store it safely. Cryptocurrencies are stored in the digital wallet. These wallets hold the private key that help you to access your Bitcoin address, also known as the public key. Many blockchain wallets are in the market, these wallets are useful, as it will be more intuitive and convenient to use.

Blockchain wallets hold various private keys and there are numerous wallets with a wide range of features available. Digital wallets can either live on your smartphone or computer, on a piece of paper or on a physical storage gadget. Blockchain wallets are used by many and most individuals are concerned about the safety of the wallet. Here are some of the different types of wallets and its safety features:

Electronic Wallets

Electronic blockchain wallets are popular and can be hosted in the cloud or downloaded. Electronic blockchain wallets can be found on your devices and facilitates transactions. The problem with this type of wallet is that you need to trust the third party with your private keys, which may lead to safety issues.

Software Wallet

Installing software wallets on your system or devices makes it secure to control keys. Most of these software wallets are easy to use and available for free. The only problem with these blockchain wallets is that they require regular maintenance in the form of backups. In any case, if your system or devices gets corrupted or stolen, private keys are also lost.

Online Wallet

Some blockchain wallets are cloud-based and offer increased facilities. Users can access Bitcoin from any device using the right passwords. These wallets are easy to set up, and come with mobile and desktop apps, which makes it easy to receive and spend digital currencies. Most of these wallets are free. Low security is the man problem with these wallets.

Mobile Wallets

Mobile wallets are smart apps for your tablets or Smartphone, useful when you want to buy something in a shop or store. These wallets are ideal if you want to buy, send or sell on the move. Many popular mobile wallets are available and comparatively these blockchain wallets are safe.

Hardware Wallets

Hardware blockchain wallets are small devices which connect to the internet to carry out cryptocurrency transactions. These are highly secure and not easily hackable. If you are careful enough in storing these wallets, it’s by far the best and safest blockchain wallet on the market. Large investors often use these wallets to store private keys.

Paper Wallets

Paper wallets are the simplest of all blockchain wallets available in the market. Here you get to write both private and public keys on a piece of paper and store it safely. These wallets are ideal for long-term storage of digital currencies. As it’s not connected to the network, paper wallets are considered to be safe. Just make sure you don’t lose it.

The Safety of Bitcoin Wallets

The safest option is a hardware wallet, which is offline. With hardware wallets, there are no risks that your account could be hacked or stolen. But remember if you lose your wallet, all your digital currencies are gone. It’s better to create a clone or keep reliable backups.

The least secure blockchain wallet are the ones that are online; your keys are all held by third parties. But these wallets happen to be the easiest one to set up and use. Plenty of options are available when it comes to blockchain wallets, please be careful.

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