The different types of bitcoin and cryptocurrencies wallets (sketchnote)

If you are looking for an article explaining what a wallet is, here is one!

Here is a transcript of this sketchnote:

From “more convenient, less secure” to “less convenient, more secure”:

Exchanges, web wallets

pros:

• accessible anywhere
• login = simple to remember
• nice user interfaces

cons:

• exchanges get hacked
• might not handle forks

usage:

• trading
• payment

amounts:

• small amounts

examples:

• Coinbase
• Binance

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From there you own your keys!

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Software wallets (mobile and desktop)

pros:

• easy to use

cons:

• malware = money stolen
• devices break = money lost (have a backup)

usage:

• payment

amounts:

• small amounts

examples:

• Bitcoin Core
• Copay

Hardware wallets

pros:

• keys never leave the hardware = less prone to hacking
• can hold multiple cryptocurrencies

cons:

• have to trust the hardware company
• have to connect the device for usage
• costs money

usage:

• payment
• store of value

amounts:

• large amounts

examples:

• Ledger Nano S
• Trezor One

Paper wallets

pros:

• offline all the time = nearly impossible to hack!

cons:

• hard to make payment
• computer needed for withdrawal = risk of being hacked!

usage:

• store of value

amounts:

• large amounts

examples:

• a simple piece of paper!