It can be confusing to decide what kind of crypto wallet is best for you, especially if you’re new to cryptocurrency. Let’s take a closer look at two popular crypto wallet options: mobile and desktop.
Desktop and Mobile Wallets Similarities
In terms of mobile and desktop wallets, there isn’t much difference other than the device on which they are stored. They are both downloaded software wallets. Most of these wallets are hot wallets, meaning they are connected to the internet while the devices are being used. Furthermore, nearly all these wallets are non-custodial, which means they give you sole control over your crypto, as well as your private keys.
Desktop Wallet Pros and Cons
Desktop crypto wallets provide the benefit of being able to control your private keys, and therefore your funds, without having to rely on a third party. To ensure that your crypto wallet can be “regenerated” if your computer is stolen or destroyed, good desktop wallets are password-protected and have a recovery phrase.
Some recommend software wallets that incorporate features of hardware wallets for storing bitcoin. A hybrid crypto wallet allows you to store your keys in cold storage, i.e., offline, and sign transactions offline. However, it is far more complicated than using a hardware wallet alone, and the user interface is hard to work with.
Generally, users want a desktop wallet where they can store numerous cryptocurrencies. There are some desktop wallets that integrate with a trading platform so that you can trade your crypto seamlessly. However, they tend to charge higher trading fees.
It is important to remember that desktop crypto wallets lack portability. As an additional drawback, they are not as secure as cold hardware wallets.
Mobile Wallet Pros and Cons
Mobile crypto wallets work similarly to desktop wallets, except that it is downloaded to your phone or tablet. You can also trade while keeping control of your private keys.
Keeping your crypto wallet on your phone means you’ll always have it on hand. Having all your crypto in your pocket is also its biggest drawback. Despite your mobile crypto wallet’s PIN and recovery phrase, if you haven’t taken enough precautions, your funds could be lost.
One growing trend is using a second phone exclusively for crypto wallets. In addition to providing nearly the same level of convenience as your primary phone, these secondary phones generally contain a “cold” wallet. Second phones are usually powered off. In order to make a transaction, you’d turn the device on and connect it to your primary phone via WiFi or Bluetooth. Then you would make the transaction using your primary phone and immediately disconnect and power off the secondary phone that holds the majority of your funds. It’s only the sending and trading of funds that require the secondary phone to be turned on – you can still receive transactions while your secondary phone is off.
Crypto wallets for mobile and desktop are almost identical; the only difference is that one is on your phone and the other on your computer. Wallets such as these, particularly mobile wallets, are thought to strike a balance between convenience and security. You should be familiar with all crypto wallet types and specific providers before choosing one.
