Software Wallets

What are Software Wallets?

Software cryptocurrency wallets are the type of wallet that is used in storing currencies by using computer software. Meanwhile, software wallets can be referred to a typical “hot storage wallet” unlike the hardware cryptocurrency wallet that is a “cold storage wallet.” The Software cryptocurrency wallet is available in three Categories:

  • The Desktop Wallets: it is a type of computer program that stores currency locally, either on your personal computer or on your laptop. Some advantages associated With the Desktop wallets in a way whereby it renders a total control of the currency over to the owners without worrying about a third party intervention. But the disadvantageous part of operating a Desktop wallet is that there is a risk of being hacked or compromised and probably if your Desktop hard drive breaks down, your coins might be lost without any chance of remission.
  • The Mobile Wallets: this type of wallet functions through the use of mobile apps on mobile phone. When using a mobile wallet for storing your cryptocurrency, you have the advantage of quick access and easy use of your coins for transactions at a retail store. The mobile wallet has two formats of storage; the first type operates just like your Desktop wallet (including both advantage and disadvantage) while the second format of mobile wallet is the provision of mere access to an online storage server, (also with the inclusion of both the advantage and disadvantage of online wallets).
  • The Online Wallets: this type of wallets are the stress-free type of wallet that can be accessed online anywhere, anytime and at any moment. The major disadvantage of this type of wallet originates from the fact that the private keys are stored by the website operators/owners rather than being stored on your device locally.

How do they work?

There are several types of Software Wallets for storing Cryptocurrency. Some wallets can store multiple currencies while there are some that stores only one particular type of currency. There are some that require you to have your keystore/JSON downloaded on your device. However, when its time you need to access your wallet, click open the software wallet application on either your mobile phone or Desktop (but has to be connected to the internet), then input your private key code to access your wallet and carry out whatever transaction you want to.

Are they secure?

The software cryptocurrency wallet has proven to be one of the most secure types of storage for digitalized assets so far, but there are still risks of compromising by hacking your device, either your desktop or mobile phone and the inclusion of third party for keeping your private keys safe whereby some website owners might not be trustworthy.

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