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Author Topic: Different types of wallet for different purposes?  (Read 85 times)
Vaccaria
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August 28, 2018, 03:23:28 AM
 #1

So there's different type of wallets out there, paper wallet, hardware wallet, mobile wallet, browser-based wallet.

Then there's different things that people do with their cypto: holding it for months, trading it every day on exchanges, using them on their respective blockchain ecosystem, etc.

My question is: What kind/method of storage is best suited for each activity?

Different ways of asking the same question:
What is a paper wallet best suited for? Or;
When is it good to use a browser-based wallet? Or;
What is the advantage of a mobile wallet?

Thanks!

Ponder in moderation.
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jseverson
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August 28, 2018, 03:38:52 AM
 #2

So there's different type of wallets out there, paper wallet, hardware wallet, mobile wallet, browser-based wallet.

Then there's different things that people do with their cypto: holding it for months, trading it every day on exchanges, using them on their respective blockchain ecosystem, etc.

My question is: What kind/method of storage is best suited for each activity?

Different ways of asking the same question:
What is a paper wallet best suited for? Or;
When is it good to use a browser-based wallet? Or;
What is the advantage of a mobile wallet?

Thanks!

Paper wallet:

Long term storage. Not very straightforward to take coins from, which is perfect for its role.

Browser-based wallet:

Portability, I guess? Can be accessed by any device with an internet connection.

Mobile wallet

Portability and suitability for point of sale transactions.

All-in-all, you only really need one cold wallet (hardware or paper -- you may want to split your funds into multiple cold wallets though) to store your funds and one hot wallet (preferably mobile/desktop) that you can easily spend from. I'd stay away from online wallets in general.

pooya87
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August 28, 2018, 03:59:32 AM
 #3

you need to sit down and think about what you are trying to do with your coins. for example lets say you have 10BTC, what will you do with it?
if you just want to store 10BTC away for  more than a year and not touch it then a form of paper wallet is more suitable choice. and by that i mean a laminated paper or printing/etching the keys on a metal or a more resilient medium.

but if you are a day trader wanting to send that 10BTC back and forth to exchanges then a hardware wallet is more suitable for you because it is safe but at the same time  you can use it often.

or if you want to use it to make purchases, then you won't really do it with 10, you do it with smaller so put that smaller amount (like 0.1BTC) in a place where you can access it easily. it can be your desktop wallet, your phone or if you really needed it a web wallet but that should be the last resort.

Vaccaria
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August 31, 2018, 03:46:22 AM
 #4

So it is a good practice to have a variety of wallets then?

For example,
Laminated paper wallets kept in a secure place - for long term storage (6 months and above)
Hardware wallet like Nano Ledger - for day trading (Qs: How often do you deposit/withdraw funds from exchanges into this wallet?)
Mobile wallet - For small misc transactions

or if you want to use it to make purchases, then you won't really do it with 10, you do it with smaller so put that smaller amount (like 0.1BTC) in a place where you can access it easily. it can be your desktop wallet, your phone or if you really needed it a web wallet but that should be the last resort.

When it comes to "splitting" assets into smaller amounts, can you explain why you should do so, and how/where you will split them? If it is for security, how does splitting them help? If it is for convenience, I feel it is counter-productive. Or is it related to cost of transaction in some way?

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pooya87
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August 31, 2018, 04:29:34 AM
 #5

So it is a good practice to have a variety of wallets then?

For example,
Laminated paper wallets kept in a secure place - for long term storage (6 months and above)
Hardware wallet like Nano Ledger - for day trading (Qs: How often do you deposit/withdraw funds from exchanges into this wallet?)
Mobile wallet - For small misc transactions

or if you want to use it to make purchases, then you won't really do it with 10, you do it with smaller so put that smaller amount (like 0.1BTC) in a place where you can access it easily. it can be your desktop wallet, your phone or if you really needed it a web wallet but that should be the last resort.

When it comes to "splitting" assets into smaller amounts, can you explain why you should do so, and how/where you will split them? If it is for security, how does splitting them help? If it is for convenience, I feel it is counter-productive. Or is it related to cost of transaction in some way?

it is mostly preference, but also both security and convenience at the same time. it is up to you to choose which method(s) suits you the best and makes you feel more comfortable. for instance there are people only have a hardware wallet and do all their affairs with that and are happy with that set up.

i personally have a hot wallet on my desktop and a cold storage (self made using Linux and encrypted) on a USB disk using Electrum. then i have my seed written down on a paper as an additional backup in case the USB was damaged/lost,...
and the way "I" do it is that i only keep a certain amount in my hot wallet and after reaching the threshold i transfer them to my cold storage. and the hot wallet is used to receive payments, spend bitcoin, sell some if i needed money, trade altcoins with,...

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August 31, 2018, 04:30:39 AM
 #6

Different ways of asking the same question:
What is a paper wallet best suited for? Its for long period of time safe storage of Bitcoins. Its more hassle to send them, than rest of list.
When is it good to use a browser-based wallet? For convenience, its quick and simple
What is the advantage of a mobile wallet? Having small amount of BTC with you all the time, to buy coffee or dinner at restaurant

Happy to help

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August 31, 2018, 06:39:47 AM
 #7

Everyone's needs will be different. The one person might only want to buy bitcoins as a long-term investment and for that person a Paper wallet will be one of the most secure methods to store his/her bitcoins for years.

Another person wants easy access to his/her coins, because he/she frequently buys things online or pay for goods at their local merchants. These people would much rather prefer to use online mobile wallets on their phones. 

A lot of people trade bitcoin on exchanges and needs to store coins on that platform for quick buy & sell orders. <Not advised for large amounts of coins.>

So, it depends on what you want to do with your bitcoins and how safe and accessible you want these coins to be.  Roll Eyes

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August 31, 2018, 06:48:37 AM
 #8

What is the advantage of a mobile wallet? Having small amount of BTC with you all the time, to buy coffee or dinner at restaurant
Mobile wallets are also good if you accidentally lack of cash. It's like your savings card that is very handy.

You can withdraw it anytime you want as long as its accessible and you've got a local exchange that can convert it immediately.

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August 31, 2018, 06:56:24 AM
 #9

So there's different type of wallets out there, paper wallet, hardware wallet, mobile wallet, browser-based wallet.

Then there's different things that people do with their cypto: holding it for months, trading it every day on exchanges, using them on their respective blockchain ecosystem, etc.

My question is: What kind/method of storage is best suited for each activity?

Different ways of asking the same question:
What is a paper wallet best suited for? Or;
When is it good to use a browser-based wallet? Or;
What is the advantage of a mobile wallet?

Thanks!
You may visit this link. I hope it  might be of some help. The difference might probably be on the frequency of usage and exchange of bitcoins.
https://www.reddit.com/user/rnssol/comments/97puky/bit_coin_wallets_all_you_need_to_know/
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August 31, 2018, 07:11:40 AM
 #10

The mobile wallet is easy to carry, and the mobile wallet can be transferred anytime, anywhere, but the mobile wallet is not a panacea, it can not load some special coins!
Mycrypto1222
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August 31, 2018, 07:29:19 AM
 #11

Like everyone posted above, there are few different types of wallets, more you can read in this article

  • Browser wallets - This is a wallet provided by a website providing such services.
    To use it, all you need is a computer / tablet / phone with a browser and access to the Internet.
    We entrust our funds to third parties, which also involves the risk of losing funds.
  • Offline wallets -(or Paper Wallet) aka safe to store your money.
    This type of wallet is characterized by low mobility.
  • Hardware wallets - Often has the shape of a thicker pendrive. Very safe.
    They allow you to keep many cryptocurrencies at once. We can use it on any device equipped with a USB input,
    or with a suitable adapter. We will not pay with it in the store.
  • Wallets in the form of a desktop application - (for a personal computer) this type of wallet
    can be used only on the computer, on which it is installed.
    • Full node - storing the whole chain of blocks. Long synchronization time and high resource intensive,
      disqualify it as a wallet for beginners.
    • Light - the block chain is stored on servers. Fast synchronization time, low resource intensive.
  • Mobile wallets - As the name suggests, these wallets are designed for mobile devices.
    They enable quick payment anywhere by scanning the QR code.


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