What is a software wallet?

A software wallet, also known as a wallet app, is an application that allows users to HODL, send, and receive cryptocurrencies. Blockchains technically store cryptocurrencies on-chain, while software wallets provide an easy way to interact with blockchains via a graphical user interface (GUI).

What is a blockchain software wallet?

Software wallets imply a clear meaning with their name, as you can find them just like any other software application. It is also interesting to note that a blockchain software wallet qualifies as a ‘hot wallet’ because of internet connectivity.

Do you need a software wallet for crypto?

Crypto wallets include hardware and software wallets, depending on the approach for the storage of crypto assets. Hardware wallets store the private keys of users in offline environments, thereby ensuring better security for crypto. However, hardware wallets present issues of scalability, and this is where you face the need for a software wallet .

What is a desktop wallet?

Desktop wallets present a striking difference from certain web-based software wallets with the allocation of complete control over the keys and assets of a specific user. Upon the creation of a new desktop wallet, you could find the ‘wallet.dat’ file, which goes into the local storage of your desktop computer.