Wallets

An overview of the various types of wallet available.

What is a cryptocurrency 'wallet'?

Wallets are used for storing your public address where people can send you some crypto, and your private key used for unlocking access to your crypto funds

When people hear the word 'wallet', many immediately think of a pouch that holds coins, bank notes, and some debit/credit cards. Using this kind of wallet, the user can:

1. Store their money and cards inside

2. Open it and pay someone - either in cash or by card

However, as society shifts to a 'cash free' future (which has been accelerated in the wake of the COVID-19 pandemic) many smartphone users have already migrated their payment methods to digital "wallet" applications such as Apple Wallet and Google Pay, and so for them an old-fashioned wallet is a largely redundant concept.

In cryptocurrency, because you are not holding on to a physical asset, your wallet(s) are used for a different purpose - to store your public address and private key. **[LINKS TO RELEVANT PAGES]** It can also be used for sending and receiving your crypto funds.

When we hear the word “wallet,” we often think of a pouch wherein we can store physical money. Cryptocurrencies don’t have a physical form and the way we control the flow of these coins is via our private keys (unlock and use crypto) and public addresses (where to send crypto).

Comparison of different wallet types

• Comparison of formats (see table and notes)

• Terminology must be clear i.e., hot, cold, hardware vs software solutions

• Make a more attractive table similar to e.g. ...

Crypto Exchanges	Software wallets	Hardware wallets	Paper wallets
Available anywhere	Easy and convenient to use	Protected private keys - they're stored on the device only	Extremely secure - 100% offline
Easy to remember login credentials	Easy access (browser, app, desktop)	Recovered with PIN and seed; less vulnerable to hacking	Can't be hacked digitally; good for long-term storage
Least secure - prone to hacking	Susceptible to key logging	Must trust the hardware	Inconvenient for transactions
Coinbase, Kraken, Gemini, Binance	Wasabi, Electrum, Bluewallet	Trezor, Ledger, Coldcard	QR codes