Types of Wallets (Software, Hardware, Paper)
Comparing the practical options available to newcomers.
What you’ll learn
- •Software wallets: convenient apps, good for everyday small amounts, but still hot wallets.
- •Hardware wallets: dedicated offline devices requiring physical confirmation for every transaction.
- •Even a compromised computer can't move funds from a hardware wallet without your physical approval.
- •Paper wallets: low-tech offline storage, but fragile and awkward to use for spending.
- •Custodial (a company holds your keys) vs non-custodial (you hold your own keys) is a core distinction.
- •Most experienced users mix wallet types, matched to purpose: exchange, software, and hardware.
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