There are various types of digital wallets, each designed for different levels of convenience and security. Understanding how these wallets function, and the attributes they offer, is essential for making informed decisions about how to structure your digital self-custody.

In this section, we will examine each type of digital wallet—browser wallets, desktop wallets, mobile wallets and hardware wallets (in the form of smart card wallets, USB wallets and mini-smartphone wallets)—and explore the benefits, security considerations, and ideal use cases for each one. Whether you prioritize accessibility or maximum security, each wallet type has distinct features that make it suitable for different needs.

Browser Wallets: These are software wallets that operate directly within your web browser. They are highly convenient for interacting with decentralized applications (dApps) and online platforms but are generally more vulnerable because they are always connected to the internet (hot storage).

Desktop Wallets: Installed on your personal computer, these wallets provide more control over security than browser wallets. They can be used in cold storage if the computer is kept offline, but they rely on the security of your machine’s operating system.

Mobile Wallets: Mobile wallets are convenient and accessible, making it easy to manage your digital assets on the go. However, they are also more exposed to the vulnerabilities of general-purpose mobile operating systems (iOS or Android).

Smart-Card Wallets: Smart card wallets are physical devices resembling credit cards, designed to securely store private keys. These wallets are often used in cold storage since they require physical contact or proximity (via NFC) to be accessed.

USB Wallets: USB wallets are small devices that plug into a computer or other device via a USB port. They store private keys offline and only come online temporarily when plugged in to sign transactions.

Mini-Smartphone Wallets: Mini-smartphone wallets are essentially tiny, highly specialized devices with their own operating system and display, resembling miniature smartphones. These wallets allow users to securely store private keys and interact with transactions through an integrated touchscreen.