Types of Crypto Wallets
Types of Crypto Wallets
Crypto wallets can be categorized based on connectivity and custody.
By Connectivity
Cold Storage (Offline)
- Hardware Wallet: stores private keys in hardware security modules (HSM) or hardware tokens.
- Paper Wallet: stores private keys in printed or engraved physical form.
Hot Storage (Online)
- Web Wallet: private keys are stored in browser extensions or web applications.
- Mobile Wallet: private keys are stored inside mobile apps.
- Desktop Wallet: private keys are stored in desktop applications.
By Custody Model
| Wallet Type | Control |
|---|---|
| Non-Custodial Wallet | User controls the private key |
| Custodial Wallet | Wallet provider controls the private key |
Security Tradeoff
Cold wallets are more secure, while hot wallets are more convenient and accessible.