A Cryptocurrency Software wallet is a cryptocurrency (bitcoin, Ethereum, ripple, etc) application that runs on your device either smart phone or computer hard drive and offers you total control and security.
Cryptocurrency software wallet can be classified into categories or types:
Desktop Cryptocurrency wallet
Desktop Cryptocurrency wallet; This is the most common type of wallet. The programs store and manage the private key for your cryptocurrency in your PC memory. These wallets are downloaded and installed on PC’s, they can only be accessed from the PC in which they were downloaded. They are considered as the most secured type of wallet but their main disadvantage is that if the computer is hacked or contact virus, you stand a high chance of losing all your cryptocurrencies. So, this type of cryptocurrency wallet requires carefulness of the computer and maximum security to prevent hackers from hacking the computer and also preventing as much as possible the computer from contacting virus.
Examples of desktop crypto currency wallets include; Exodus, mSIGNA, Copay, MultiBit HD, Bitcoin Core, Green Address, Electrum, Etherwall, Mist
Mobile Cryptocurrency Wallet
Mobile; A mobile wallet is simply a wallet that runs on smart phone app. The smart phone could be either android, iPhones or any other operating system. These wallets run on an app on your phone, they are often considered better due to their convenience and size. They can be use in both retail stores and malls. They often don’t consume much space due to the limited size of most phones.
Examples of mobile cryptocurrecy wallets includes; Coinomi, Ethos, Infinito, Copay, Bread Wallet, Edge, Jaxx
Online Cryptocurrency Wallet
This type of wallet run on cloud and can be accessed from any device in any part of the globe. This type of crypto wallet though its considered to be the most convenience, it is important to know that is one of the most if not the most vulnerable type of cryptocurrency wallets as it could easily be hacked by hackers since the third party control the private key which is stored online.
List of top best software wallets
Jaxx Liberty; this Cryptocurrency software wallet was founded in 2016 by Anthony Do Lorio the founder of Ethereum. Jaxx is supported in windows, Linux, Android, IOS, etc.
It support over 80cryptocurrencies. Jaxx is an open source code for user interface. Private keys are controlled by users and don’t leave the device in which the wallet is installed.
It important to note that in 2017, jaxx was hacked which resulted to the lost of $400,000 what of cryptocurrencies. Jaxx is based in Canada.
BitGo; founded in 2013 with headquarter in California USA. BitGo is a blockchain company. The wallet was originally designed for bitcoin only but it has been modified to support popular cryptocurrencies such as Ethereum and others. This wallet is supported in desktop, laptop and other devices. Though it has mobile version that is supported in android and IOS.
Bitcoin core; this was created in 2009, lunched together with bitcoin project software. It only have desktop and laptop version and is not support in mobile phone which is one of it set back. The major advantage of this Cryptocurrency software wallet is security. All the information are stored in the user PC and undisclosable to the third party. Another advantage of this wallet is its anonymity. Bitcoin core uses rotation address system which makes it impossible to track the address of both the sender and the receiver.
The lists of software cryptocurrency wallets is inexhaustible but the few mentioned above are some of the reliable ones.
Importance of wallet
Cryptocurrency wallet is an integral part of cryptocurrency technology, it permit the transfer of coins across blockchains and also makes it possible to store cryptocurrency both for short and long term storage.