Disruptive technological trends like blockchain have already made a huge impact on industries like healthcare, real estate, mortgages, transportation and more. With the advent of blockchain technology, development of cryptocurrency wallets came into operations. Cryptocurrency wallet helps people store private and public keys which enables them to receive and send cryptocurrency with just the press of a button.
Cryptocurrency wallets do not store crypto coins but it helps users interact with blockchain during transactions. There are three ways in which users can save their cryptocurrencies:
- Hardware Wallets
- Software Wallets
- Custodial Wallets
Through cryptocurrency wallets, users have the leverage to opt for cold or hot storages.
- Hot Storage: This type of storage option enables the user to store his coins online and they are usually prone to hacks.
- Cold Storage: This type of storage option enables the user to store and secure their Crypto coins even when they are offline.
Hardware wallets, software wallets, and custodial wallets have been ruling the industry in their own specific ways. However, choosing the right one for your business app could be challenging. Before you proceed further and select a crypto wallet, read the points we have stated below to get the idea on cryptocurrency wallets and select the one which would be best suitable for your business.
Custodial Wallets
Custodial wallets are the most preferred wallets and they are highly useful in the storage of private keys. Third party custodian looks after these private keys and saves them for the future. These are hot wallets and are a perfect option for someone who is new to the Crypto world. Custodial wallets come integrated with San Francisco-based cryptocurrency exchange and Hong Kong-based Bitfinex platforms and do not need to resort if the users need to use them. These wallets also enable users to quickly and efficiently manage their funds.
The only drawback of custodian wallets is that they do not provide complete control but they do give the users a high level of security when compared to others.
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