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  3. Different Types of Wallets

Different Types of Wallets

Bitcoin Wallets

Before you being trading cryptocurrencies or bitcoin futures, securing your funds is the most important thing. There are multiple options and methods to store your cryptocurrencies. In this article, we will cover some of the most prominent types of wallets.

Paper Wallets

This is the least technological option of them all as it involves printing your public address and private keys on a piece of paper. The benefit of this option is that you keep your cryptocurrencies offline. Of course, if your paper gets damaged or lost, you may lose your funds forever.

Mobile Wallets

This is perhaps the most used and most convenient option. Virtually everyone carries a smartphone today. This means constant and consistent access to your funds. However, you must choose a mobile wallet carefully based on how much you trust the company behind it. Because these are hot wallets (connected to the internet), the security measures the company employs are of utmost importance.

Desktop Wallets

These wallets may be slightly less convenient than mobile versions as not everyone carries a computer everywhere they go, but generally being able to access your computer multiple times a day should not be too difficult. Just be careful as your computer often remains connected to the internet and must be secured property through antivirus software and firewalls.

Web Wallets

This option can be accessed by any type of device with an internet connection as the wallet stores your funds online. Though convenient, this is perhaps the least safe option as it is prone to malicious hacking and DDOS attacks.

Hardware Wallets

Finally, we have hardware wallets or devices specifically designed to store your cryptocurrencies. They often come in the form of a USB Flash Drive with some sort of way to navigate through its options on a small screen. These can also be connected to your computer. This type of wallet is the most secure option and an excellent way to keep your funds offline.

Phemex Security

When you store your funds on Phemex to trade Bitcoin Futures with us, you can rest easy knowing that we employ various sophisticated security measures. We use a Hierarchical Deterministic Cold Wallet System which assigns separate cold wallet deposit addresses to each user. All the deposits are periodically gathered in the company’s multisignature cold wallet via offline signature. Withdrawal requests are rigorously scrutinized by both operators and founders and anything perceived as malicious is instantly stopped.

Stay tuned for more blog articles on different concepts and ideas that will improve your knowledge of Bitcoin Trading.


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Updated on June 4, 2020

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