Software Wallets
Some of the popular applications are:
- Electrum
- Exodus
Mobile Wallets
Some of the popular mobile wallet apps are:
- Bread
- Jaxx
- Freewallet
- Services such as Coinjar and Coinbase etc. also have mobile wallets
Hot Wallets (or Web Wallets)
The term hot wallets usually refers to web-based wallets. Services that let you purchase cryptocurrencies will provide you with wallets, as will exchanges. These are most commonly used only when trading, any substantial amounts are transferred to hardware wallets.
It’s important to know that with these types of wallets, your private keys are typically stored on the server, unknown to you. As with all software-based wallets, these aren’t seen as ideal. Best practice is to manage your own keys, preferably by using a hardware wallet. Hardware wallets handle this for you.
If you must use a software wallet, make sure you enable any additional security settings such as 2-factor authentication using Google Authenticator, or SMS-based messaging. If you’re actively trading, you will need to rely on software wallets, so it’s important you understand the risks. Make sure you’re read the Getting Started pages for more security tips.
There have been quite a few examples of theft from high profile services, due to their systems being compromised by attackers. Do not use software wallets for storing large amounts of currency for long periods of time.