Any Crypto wallet is just a way to store a combination of your public address key and a private key, but various companies developed multiple software solutions to improve user experience and provide additional features that serve particular purposes.
1) Desktop wallets
Desktop Crypto wallets are software programs that you download and install on a computer. They are easy to install and available for all operating systems of PC though some of them can be used only on a particular OS. Most desktop Crypto wallets provide you with a mnemonic phrase upon installation. It's a long string of words that store data required for wallet recovery. You will need it to get access to your Crypto wallet if it is re-installed. So it's vital to keep the mnemonic phrase in a safe place, far from prying eyes.
Benefits: Desktop Crypto wallets offer a high level of security as they are accessible only from the computer on which they are installed. Your wallet security is your responsibility. You don't have to rely on other people to protect your Crypto wallet from external threats. Also, desktop wallets usually have rich functionality and offer additional tools and features. Most cryptos have a desktop wallet created for their coin.
Drawbacks: Since your computer is connected to the Internet, your and your digital assets may fall victim to viruses and malware. If your PC is hacked or gets a virus, you may lose your virtual money. So antivirus, anti-malware software and a good firewall is a must if you want to keep your Cryptocurrency safe and sound.
Examples of desktop wallets
Exodus is a user-friendly wallet with easy interface; perfect for those who are just starting their cryptocurrency journey. Exodus wallet allows keeping Bitcoins and a number of altcoins including Ethereum, Litecoin LTC, and Dash. It as is available for Mac, Windows and Linux.
Copay is a multisig Bitcoin BTC wallet created by BitPay, the largest Bitcoin payment service provider. Multisig feature provides additional layer of security as it means that the Bitcoin BTC address can be collectively controlled by 2 or more people. It is available Windows, Mac and Linux.
2) Mobile wallets
Mobile wallets run as an app on a smartphone and are very similar to their desktop siblings with additional features such as a QR code scanner. They are the most frequently used type of Crypto wallets, which is hardly surprising as nowadays people like to do things on the go, be able to check their cryptocurrency balances, send and receive coins anytime, anywhere. All major cryptocurrencies have mobile wallets both for iOS and Android, though less popular ones may have only Android versions.
Benefits: Mobile wallets are very practical. You can easily use it in a retail store to pay or send Crypto. They are smaller and faster, tooled for being used on the fly.
Drawbacks: Mobile wallets have only basic functionality due to the limited space of a mobile device. What's more important, an overwhelming majority of cryptocurrency wallets are vulnerable to cyber threats, viruses, and malware as they are always connected to the Internet and have weaker cryptographic security key features. You also have to be extra careful about protecting your device as anyone who gets access to your phone with a cryptocurrency wallet on it, will be able to take your money away.
Examples of mobile wallets
Coinomi is a mobile crypto wallet that supports multiple coins including Bitcoin BTC, Ethereum ETH, Ethereum Classic, Litecoin, and Dash. It is available for iOS and Android devices.
Jaxx is a multi-crypto wallet for iOS and Android devices that supports dozens of cryptocurrencies and ERC20 tokens, including Bitcoin BTC, Ethereum, Ethereum Classic, Litecoin LTC, ZCash, and many others. Integration with ShapeShift service allows to exchange coins right from the Crypto wallet.
3) Online wallets
Online crypto wallets live in a cloud and can be accessed via web-browser from any Internet-enabled computer or mobile device. They combine the functionality of desktop Crypto wallets and the accessibility of mobile ones, which makes them very appealing.
Benefits: Online wallets offer faster transactions as there is no need to wait for the app to connect to the server. Many of them are integrated with crypto exchanges or allow to transfer amounts between supported coins. They can be very handy if you treat them like a digital piggy-bank for small amounts.
Drawbacks: Low-security level is their weakest point. Your private keys are stored somewhere in the cloud and controlled by someone else, not you. It makes them a desirable target for hackers and other crypto villains. You should always keep in mind that online exchanges and online wallets are hacked much more often than any other type of wallet. So, the basic advice is not to put all your digital money to an online wallet.
Examples of online wallets
MyEtherWallet is solely an online solution that allows to store Ethereum and Ethereum-based tokens. It doesn't support Bitcoin and Bitcoin Cash, or other related currencies. MyEtherWallet doesn't store private keys on its servers, which means increased security and more control over your coins.
MetaMask is an extension for popular browsers, that allows you o store, send and receive digital coins based on Ethereum protocol. It is one of the top three online wallets for ERC20 tokens. MetaMask is user-friendly with simple and clear interface.
4) Hardware wallets
Hardware wallets are fundamentally different from all the other types of wallets discussed above. They store your private keys on a separate offline device, like USB. If you need to send money, just plug the device in a computer with an Internet connection, make a transaction and disconnect the wallet. Some models have LED screens, which means that you can get one without a computer at all. Popular hardware wallets allow you to store over 22 cryptocurrencies and hundreds of ERC-20 tokens. They are the best option for saving large sums of cryptocurrency that you keep as a long-term investment and don't plan to move around too often.
Benefits: Hardware wallets focus on security. They offer the highest level of protection against cyber threats because they only make transactions online, but the keys are stored offline. You won't lose your money as long as you make sure that you don't lose the device itself.
Drawbacks: Hardware wallets are less user-friendly They are usually compatible with several web-interfaces, but their functionality pales in comparison to software wallets. Hardware devices cost about $70-$150 and often sold out in a split second, so if you might find it difficult to get one for yourself.
Examples of hardware wallets
Leger is one of the most popular hardware cryptocurrency wallets. It supports Bitcoin, Litecoin, Ethereum, Zcash, ERC20 tokens, Ripple, and Dash among others. Ledger is considered to be most universal cryptocurrency hardware wallet. Cost: $95.
Trezor is another popular hardware solution for keeping your coins safe and sound. It supports Bitcoin, Litecoin, Ethereum, Zcash, Dogecoin, Dash, ERC20 tokens and others. Cost: $99
KeepKey it's the simplest Cryptocurrency hardware wallet. It secures Bitcoin, Bitcoin Cash, Bitcoin Gold, Ethereum, Litecoin, Dogecoin, Dash and multiple ERC20 tokens. Cost: $129
5) Paper wallets
Paper wallets are an early prototype of a hardware wallet. You create it via dedicated service, print your private keys and public addresses on a piece of paper- either as a string of letters and digits or as a QR-code - and start transferring coins from your software wallet to this one. If you need to spend some coins, you need to move funds from your paper wallet to your software wallet. This process often called ‘sweeping.’
Benefits: It is cheap and secure at the same time. Strange as it may seem, they are considered to be one of the most hacker-proof types of wallet as they are not stored on a computer or any other Internet-connected device.
Drawbacks: Paper wallets are not for newbies. You need some technical knowledge, patience and a high level of caution to create and use it afterward. Paper is not very durable material, so you have to take extra care to keep your wallet from fire, water, and a shredder.
Examples of paper wallets
ethaddress Wallet is a free software that allows to generate a paper wallet and store Ethereum with security benefits of offline storage.
WalletGenerator is an online service for generating hack-proof Bitcoin paper wallets.
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