Similar to a mobile wallet, the data in a hardware wallet is portable,

secure, and convenient to use. However, they cannot be used on the

fly with other apps, something that we can do with the mobile

wallets.

1.5.3.1.5 Paper wallets

Paper wallets can also be used to store the keys in the printed form

or as a QRCode. They can be stored in such a way that none but the

owner has access to the data. They are useful in a low-tech

environment, especially for users who do not have a mobile phone or

desktop or access to the Internet. However, the drawback is that the

data in such wallets cannot be integrated with the online apps and

hence can’t be fully utilised in all scenarios.

Crypto wallets can also be categorized on the basis of their type of

ownership.

1.5.3.1.6 Non-custodial wallets

The non-custodial type of wallet gives a user the complete

ownership of private keys and associated cryptocurrencies. While

this approach gives absolute security to the users, at the same time,

it’s risky, as some unexperienced first-time users may lose their

private keys and the underlying assets along with it if the password

is lost.

1.5.3.1.7 Custodial wallets

A custodial wallet is a different type of wallet where the user relies on

a third party to store the private keys as a custodian. While with the

custodial wallet, the responsibility of the user is far less in handling

the keys, this solution might not work for all use cases as the user

needs to fully trust the third party for the security of the keys. Hence,

these wallets are considered less secure than the non-custodial

types, and yet they are preferred by many, especially those who

either are not tech savvy, or do not have the time to handle it all on

their own.