When it comes to cryptocurrencies, one of the biggest debates is often around how a person should store their coins. Digital currencies such as Bitcoin are kept safe in either a hardware wallet or a software wallet, and inevitably everyone has their personal preferences. However, the question which is begging to be asked is, which should you choose and why?
Hardware wallets, in many respects, give users an extra layer of protection, something which is perhaps missing in software wallets. These devices are custom built with a secure chip inside, so when connected to a PC via the USB port, for example, there’s no risk of cyber crooks wreaking havoc. For instance, with other types of storage one may be required to enter their private key, and if a cybercriminal is listening in, they could steal it. However, with a hardware wallet connecting via USB, the key is already stored securely, so it will never be at risk.
The Ledger Nano S is one of the most popular hardware wallets on the market right now. It’s a fantastic entry-level device and is relatively cheap too. Users will be able to access their funds without the need for a computer, which could be a bonus for many. It’s the perfect way to start storing cryptocurrency offline.
Software wallets, on the other hand, are, as you will have guessed, pieces of software that allow for storage. The software is specifically designed to run either online or on desktop and mobile devices, making it incredibly convenient for the user. Software wallets such as the one by Luno, are undoubtedly the more modern way to store cryptocurrencies such as Bitcoin, as they allow users access to their storage facility whenever it’s required, and from wherever they are.
As mentioned above, the Luno Bitcoin Wallet is arguably the pick of the bunch for software-based storage. Luno, as a company, is determined to make the buying and storage of cryptos as secure as possible, and with over three million users active, it’s easily one of the most popular software wallets around. As a trusted manufacturer that has overseen more than 8 billion dollars’ worth of transactions take place, the Luno wallet is our pick for online storage in the cryptocurrency seen right now.
If you happen to own an amount of cryptocurrency or are planning to in the future, deciding on how to store it will arguably be the first biggest puzzle to solve. Hardware and software wallets both have their pros and cons, just like anything, so your choice should be based on which of the two formats suits your situation best.
The hardware wallets are perhaps more secure from hackers and cyber crooks, but they can easily be lost, stolen, or damaged. Software wallets will provide easier access and make everything a hell of a lot more convenient, but they are at risk in the online world. It’s a decision that requires everything to be taken into account.