Most people who have heard of crypto are at least somewhat familiar with cryptocurrency wallets. They are basically software applications (or storage hardware) that you can use to store and manage your various cryptocurrency coins for later use.
If you want to store your money safely, then it is important to choose a wallet you can actually rely on. It is not as simple as just choosing one particular program or tool: you need to think about how you will use the wallet and what kind of features or security measures you will want from it.
Online or Offline Crypto Wallets?
There are many different types of cryptocurrency wallets available. Some are internet-enabled (or placed on a computer that has internet access), while others are fully isolated, and this can make a significant difference to how you end up using them as a whole.
Online wallets provide ease of access, usually allowing you to make quick and short-notice trades on exchanges without much hassle. This can be ideal for people who are constantly moving their crypto around or who care more about getting a good profit than having an excessive amount of protection that they may not even need.
Offline wallets are usually designed to be isolated most of the time, only plugged in or connected to the internet when the crypto inside is needed. Since these are generally physical mediums like memory sticks, it is possible to lose them in real life, but they are also far more secure if you are worried about hackers or viruses gaining access to your cryptocurrency data.
Standalone Wallets or Exchange Wallets?
Some wallets are entirely standalone. They are one-off platforms or pieces of software that operate independently, generally allowing you to have more control over how you use the wallet without being pressured into any particular actions. However, these also rely on you connecting them to various platforms yourself and often are not designed for any specific exchange.
Exchanges sometimes come with their own wallets built-in, providing a convenient place for you to put crypto if you want to use that cryptocurrency exchange platform quite often. Of course, this also places your money in a wallet operated by that exchange, so you need to be sure that you trust the platform.
There is nothing wrong with having multiple wallets or even keeping different wallets for different platforms and purposes. However, the more you have, the more you need to manage. It is up to you to decide how many wallets you want: some people are fine with just one, while others require multiple to keep up with their larger-scale trading.
The Bottom Line
Whether you go for a standalone, online, or offline wallet, there are a few things you should consider. Firstly, which wallet type do you think is best for you and your needs? Secondly, what kind of security measures are you looking for?
Different crypto wallets offer different features and benefits, so it is a good idea to compare your options if you are stuck between multiple potential choices.