Firstly, It’s important not to get confused between cryptocurrency wallets and exchanges. The majority of exchanges have mobile apps (For example Coinbase, Binance, etc). These are NOT wallets. They are simple app’s that display the amount of crypto your account on that exchange holds. These can be useful for quickly exchanging between crypto’s and fiat (pounds, euro, dollar, etc) but we don’t recommend keeping your crypto on an exchanges long term as exchanges get hacked and close down resulting in people losing their funds.
A ‘real’ wallet should give you full access to your private key. If you don’t hold your own private keys you don’t have full access to your coins.
Of course there are things to consider when using a wallet rather than an exchange to keep your crypto in.
If you use a wallet you are responsible for keeping your private keys safe. If you lose them no one can help you.
Another common wallet misconception is that the wallet is actually holding your coins within it. It isn’t, its actually the network that states how much cryptocurrency you have. The wallet is basically a software program which secures your private keys and grants you access to your public address allowing you to interact with the network as well as displaying the amount of cryptocurrency you hold.
There are thousands of different wallets available for all the different coins out there. Some wallets are designed to hold many coins with the same private key whilst some are designed to only work with one specific cryptocurrency.
Wallets can be broken down into 5 main types, all of which have advantages and disadvantages. Below is a list of these but before choosing which is right for you we suggest doing some further research;