A cryptowallet is used to hold or store your cryptocurrency. From the point of view of the end user, it is an app that you can install in your computer or smartphone. Commonly, there are online, paper or physical wallets as well.
A type of wallet which is suitable for most users and daily use. They are easily accessible from anywhere. That, however, makes them slightly less safe. It is recommended to only hold only smaller sums used for short term trading and everyday consumption in this type of wallet. Each month, new stores and websites that accept cryptocurrencies appear. We recommend you only use proven web wallets and activate additional security methods (verification by phone, two factor authentication 2FA)
(Example of Online Wallet: Blockchain.com)
The most practical type of wallet, which can be used to provide payment from virtually anywhere. All you need to do is download app, sign up and you can bring your cryptowallet along everywhere you go. This wallet is designated for use on daily basis and that's the reason why it's important to follow the same rules as with the online wallet. Hold only small sums and make it as secure as possible. Bear in mind, that by having a cryptowallet in your smartphone you at risk not only of having your funds stolen due to software hacking but also of having the phone physically stolen as well, which would give the thief full access to your investments.
(Example of Smartphone Wallet: Jaxx, Blockchain app)
A wallet that is installed locally on your computer is considered a safer alternative to online wallets and smartphone wallets. In the case of a desktop wallet, your unique Private key is saved in your computer. It's not possible to access it from another computer, which can be considered a disadvantage due to a lack of mobility, but, on the other hand, it's clearly safer as long as you are the only one with to your computer, which is not easily stolen. Very easy control is an additional advantage.
(Example of Desktop Wallet: Electrum, Exodus)
This type of wallet is considered to be the safest one and they can be divided into two groups:
A wallet whose private key doesn't appear anywhere on online servers. You are the only one who possesses it in physical - printed form. The security this provides is undoubtedly an advantage. Disadvantages include the fact that it adds difficulty to the process of handling cryptocurrencies as well as that it can easily get lost or stolen without any possibility of restoration.
(Example of Paper Wallet: BitAddress.org)
They are ideal for long term storage of a large amount of cryptocurrencies that you don't trade frequently. Private keys are saved in a physical and strictly off-line device. If you want to trade your cryptocurrencies, it is necessary to have the device physically with you. That's why hardware wallets are considered to be the safest. Disadvantages include a higher initial investment and the possibility of loss or theft.
(Example of hardware wallet: Trezor)