Software wallet

A software wallet is a kind of digital wallet in which a user's private key is stored. Software wallets are basically computer programs, so they are often stored on a desktop or a phone. Furthermore, software wallets are often connected to the internet. Advantages of software wallets compared to hardware wallets are that a software wallet is more accessible and you can send crypto faster. The main disadvantage of a software wallet is that it is more susceptible to hacks than a hardware wallet. It is important that software wallets are always up to date with the latest software due to the security risks of older software versions.

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Cryptopedia: Software wallet