How many Digital Wallet types are there? How to store information to be safe?

Digital Wallet is divided into subcategories to cover its use. If we understand the term digital wallet, we can categorize them into the right usage and be very safe with our work. So, how many categories of digital can we divide? Today, ACU PAY will explain it to you.

How many types of Digital wallets are there?

Types of digital wallets should be selected to suit their use. It can be divided into 2 types as follows:

Hot Wallets

Digital wallets that need to be connected to the Internet in use by service providers storing the Private Key include:

Soft wallet

It comes in the form of an application that can be downloaded to various electronic devices. The security is moderate as it is an access that needs to be connected to the Internet. This may cause it to be hacked.

Web-based wallets

It’s easy to access the website. It’s fast and convenient to use without downloading applications. It’s easy to access from anywhere just connect to the Internet. Security is considered low compared to other types of digital wallets. The access allows the website to remember and record our information. The user’s information will remain on the Internet, even if it is maintained by a website owner, it may become lax, fraudulent, and damaging.

Cold Wallets

It is a Digital Wallet that works outside of the Internet and concrete. The Private Key will be kept by users with the owner of the wallet that uses it. Therefore, this type has high security because no one knows the Private Key other than the user, consists of

Hardware wallet

It is a storage device that comes in a form that does not need to be connected to the Internet. It can be physical whether it is USB, Cell phones or storage devices are relatively safe because they are stored in a personal USB and only users know the Private Key code. Even if it is done outside the network, in case you would like to use the digital money, it must be connected to the computer to use it as well.

Paper wallets

Writing or copying on a physical paper to prevent hacking, which avoids hacking on the Internet. But if we lose this paper, it means that we will lose the information, too. Paper wallets are difficult to use digital wallets since financial usage is required to be done via the Internet.

What's the use of digital wallets?

You don’t have to carry cash. Change from carrying a wallet to carrying a digital wallet in the form of an application. You can pay without touching money. However, some stores may not have access yet.
Cash circulates, causing income distribution. Money in the digital wallet will circulate within the application, making it impossible to withdraw money but it will be an increased income distribution instead.
The digital wallet is designed to provide two-step encryption, providing excellent storage security and verification of executable items.

Summary of Digital Wallet Types

The Digital Wallet is divided into two categories, which are Internet-connected and external-active. In terms of security, it is up to its usage. If the information is not important, you may use the easy one which is convenient and suitable for your usage. The ACU PAY Application E-wallet is designed to ensure the safety of information. We know the meaning of E-wallet and digital wallet, and although both of these are similar, there’s still a difference. How are these two different? ACU PAY will tell you about it.