If we talk about modern technology, bitcoin is the first name that comes to mind. It is a decentralized cryptocurrency that you can use to make easy payments all over the world. Bitcoins are stored in digital lockers known as bitcoin wallets. There are numerous types of bitcoin wallets that you can use, and each one of them has different features. So, for your help, some of the common types of bitcoin wallets are explained below.
Web wallets are hot bitcoin wallets that allow you to access bitcoin through any browser connected to the Internet. With a web wallet, you need not download or install any software on your system as you can simply visit the URL, like this website and gain access to your wallet.
There are numerous web wallet providers, and few of them store the private keys on your behalf. It is a convenient feature for beginners, but it is quite risky, and if you don’t have control over the private keys, anyone can sign in to your wallet and use the funds stored in it. So, you must choose a web wallet that offers you complete control over the private keys. A few of the best cryptocurrency to invest in are explained in other articles.
Moreover, web wallets are hot wallets that exposes them to several risks such as hacking, phishing, malware, etc. So, you must look out for some security features such as two-factor authentication, multi-signature, anti-phishing code, etc. There are two types of web wallets; hosted and non-hosted. You must go for the non-hosted wallets as they are more secure and provides better control over the private keys.
Desktop bitcoin wallets
The computer has become a vital machine nowadays as almost every use it in their daily lives. So, if you are one of them and spend most of your time sitting in front of the desktop, there is no better option than a desktop wallet. A desktop wallet is a type of software that you can install on your system and used to access bitcoins and make transactions through your computer. These wallets are considered the best safest option after hardware wallets. With desktop wallets, you get complete control over the private keys as it is stored in a file that is stored in the local disk of your computer.
The file containing the private keys is essential, so you better encrypt it with a password to increase security. If you are using a desktop wallet, you must ensure that you have a good and reliable antivirus installed on the system so that the bitcoins stored in the wallet stay safe from risks such as viruses, malware, etc.
Security is the most important factors when it comes to choosing a bitcoin wallet. Bitcoin has minimum rules and regulations, which exposes it to several risks such as hacking. So, it is necessary to select the safest bitcoin wallet, and for that, there is no better option than a hardware wallet.
A hardware wallet is an offline wallet which is a type of USB device which you can connect to any computer and access the bitcoins stored in it. These wallets use an RNG system to generate random Private keys, and all of them are stored on them offline. Hardware wallets are the safest bitcoin wallets as they safeguard the bitcoins from all kinds of threats.
If you are novice bitcoin users, a hardware wallet may not be the right option for you as it has a quite complex user interface which will make it challenging to use all the features and functions. It was quite expensive as compared to other wallets in the market, but the security and convenience it offers make it completely worth the cost.
A paper wallet is a bitcoin wallet in the form is a piece of paper. It has all the private keys imprinted on it in the form of QR codes. You can also download the QR codes from some paper wallets and create a new address without being connected to the Internet.
Paper wallets are completely offline, which protects them from hacking attacks, malware, etc. But you need to be highly cautious while using paper wallets as if you lose it, or it gets damaged; you may lose access to your bitcoins forever. Moreover, you cannot send partial funds using paper wallets which is one of its biggest drawbacks.