If you’re new to cryptocurrency this is a question that you’ve definitely started thinking about. With all the wallet options available to choose from, it’s tough to decide which type of wallet or provider to go with.
In this quick guide we’ll explain the benefits of hardware and software crypto wallets, as well as the most popular options on the market that are suitable for USDT and CHP tokens. If you’re looking for a guide on how to purchase CHP tokens in the first place click here.
Hardware vs Software Wallets for CoinPoker Players
Both USDT and CHP are ERC-20 tokens, which means that they are built on the Ethereum (ETH) blockchain. These are just two of thousands of altcoins developed on the ETH network, and can be stored in a wide variety of ERC-20 token wallet options which we cover below.
There are a few types of cryptocurrency wallet categories to choose from depending on your budget and preference. A more expensive but secure option is to choose a hardware wallet, and a free, convenient, but more vulnerable option is to use a software wallet.
What Is a Cryptocurrency Hardware (“hard”) Wallet?
As the name suggests, it is a wallet that comes in the form of a USB stick where your cryptocurrency is stored. The device is, you guessed it, a piece of hardware that acts as an encrypted wallet for your funds, and is usually unlocked with a PIN code.
Depending on the hard wallet you decide to use, you can either use it in combination with a software wallet to transfer funds back and forth from the web to use to your hard wallet for storage. The obvious benefit is that, once your CHP tokens (or other crypto assets) are on the hard wallet it is impossible for them to be hacked into.
Hardware wallets like Ledger store cryptocurrency assets on USB-like devices.
What Is a Cryptocurrency Software (“soft”) Wallet?
Again, the name pretty much says it all. Software wallets come in the form of web platforms, browser extensions, desktop or mobile downloaded clients that store your cryptocurrencies for you.These “wallets” hold all your cryptocurrencies in the form of data in a highly secure cloud (in contrast to the physical flash drive that a hard wallet holds your funds in) that is accessible via a range of sign in options depending on the client you use. A few of these access methods include:
- Private Key: A unique combination of digits that is impossible to crack (as a opposed to a password or PIN) and lets you access your funds
- Keystore File: A short bit of script (often in the form of a JSON file) that can be saved to your computer and run when you need to access your wallet – more secure than the use of a private key which can be copied and used
- Mnemonic Phrase: A series of randomly selected words that can be written down or (ideally) memorized and entered to grant you access instead of a private key
Other options are access through browser extension software wallets or directly connecting your hard wallet. Depending on the soft wallet you use you will have varying access options and plenty of help from the wallet provider on which option is safest.