Software Cryptocurrency Wallets

A software cryptocurrency wallet is a first-party digital wallet which uses applications to store your private and public keys. It can be a mobile wallet, where you will download the application on your mobile device, or a desktop cryptocurrency wallet, which is compatible with your PC. It is first-party since it is managed only from your computer or mobile device. Once you download it, you will be able to decide when to initiate the updates and who will have access to your information and keys. Read more about software wallets for cryptocurrency.


What Are the Benefits of Software Cryptocurrency Wallets?

You can disconnect your PC from the internet for cold storage

For a desktop cryptocurrency wallet, you can choose to connect your PC to the internet or not. In case of the latter, you will store your private and public keys in a cold wallet which adds to the security since no hacker will have access to it.

It is more secure than an online wallet

For an online wallet, it is managed by a third party, such as a cryptocurrency exchange. This means that your information and addresses can be accessed by the third party. This is not the case for a software wallet, where your information and private keys cannot be accessed by third parties. To choose the best cryptocurrency wallet app, make sure it is popular and has positive reviews from other investors.

Easy to transact using your mobile wallet

You can shop online and pay using your mobile wallet while on the move. It makes the sending and receiving of coins easy since you will have an easy access to your mobile wallet. Some stores accept payment in cryptocurrency, especially in bitcoin, which means that you can transact with ease from your mobile device.

What Are the Drawbacks of Software Cryptocurrency Wallets?

You can lose your mobile device

Mobile devices are portable which makes it easy to lose them. This can increase the risk of someone else having access to your mobile wallet PIN and private addresses to your coins. in short, you can lose your money just like that.

It is vulnerable to computer viruses

A desktop cryptocurrency wallet may not be hacked but it is prone to computer viruses. Ensure that you update your PC regularly with a reliable anti-virus and maintain thorough security routine and precautions to protect your PC and wallet. Your desktop and mobile wallets are as secure as your PC and mobile device.

To get the most out of your desktop cryptocurrency wallet, have an extra laptop which is not connected to the internet and use it solely to accommodate your desktop wallets. Also, choose the best cryptocurrency wallet app, which is reputable in the market, as a secure software wallet.