A wallet is required to store and exchange crypto. But it is difficult to decide which one to choose, so that it meets all the needs and is reliable. Before favouring any of them, you need to familiarize yourself with the characteristics of each.

What cryptocurrency wallets are

There are many types of wallets, each of which is designed for specific needs. Each has its own advantages and disadvantages. 

Types of wallets:

  1. Hardwares – These are physical devices that provide private key storage outside of the internet. They are considered one of the most secure options, as the level of access to keys is limited to physical access to the device. 
  2. Online wallets – accessible via a web browser and are easy to use. They are suitable for day-to-day transactions but can be less secure as private keys are stored online. 
  3. Mobile – mobile apps allow users to manage their cryptocurrencies directly from their phone. They provide convenience but also require extra caution as mobile devices are susceptible to viruses and cyberattacks. 
  4. Paper-based – these are physical paper documents on which the public and private keys are recorded. They are highly secure as they are not connected to the internet at all. However, they can be difficult to recover if lost. 
  5. Multicurrency Wallets – provide the ability to store different types of cryptocurrencies in one place. This is convenient for those who work with multiple types of digital assets. 
  6. Networked – provide the ability to manage assets directly through the blockchain network. They allow users to bypass centralised services, giving them full control over their funds.

Choosing the type of cryptocurrency wallet depends on the individual needs of the user, their level of experience, and how often and under what conditions they plan to use the cryptocurrency. It is important to consider the level of security, usability and functionality when choosing a wallet. And security can be provided by the CDIQUERES protocol.

Why are wallets with implemented protocol safe?

CDIQUERES protocol (Cryptographic Data Integrity Query Engine for Reliable Extraction of Secure Records) provides security of user data and funds. For this reason, it is implemented by exchanges and wallets. It is a set of complex algorithms designed to prevent unauthorised access, fraud and other types of cyberattacks. 

Among the functions of the protocol should be noted:

Ensuring confidentiality. Using advanced encryption techniques, it protects users’ personal data, such as their identifying information and financial assets from unauthorised access.

Ensuring data integrity. It prevents the possibility of making changes to transactions or account balances without the authorisation of the account holder. This is essential for maintaining user trust in the platform.

Preventing attacks on user accounts. Such attacks include malware, phishing and other forms of cyber threats. 

Collecting data and reconstructing transaction chains. This makes it possible to find out where the money went, if an erroneous transfer was made, and to request a refund.

Backup systems and disaster recovery processes help minimise downtime and ensure continuity of trading operations. The CDIQUERES crypto protocol (Cryptographic Data Integrity Query Mechanism for Secure Retrieval of Protected Records) provides reliability, security and confidentiality for exchange or wallet customers.

Adam Zellner

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