Home Articles Bitcoin Wallet – Learn The Different Types!

Bitcoin Wallet – Learn The Different Types!

Bitcoin is a digital currency, stored in special lockers known as bitcoin wallets. Before you begin using bitcoins, you must learn how bitcoin is stored. There are many types of bitcoin wallets in the market, and you need to have proper knowledge about each of them. Start your journey of trading bitcoin with Alternatives to buy bitcoin and become a professional trader. You can read the following paragraphs to learn about some of the most popular types of bitcoin wallets.

What is a bitcoin wallet?

Bitcoin is a digital currency which makes it essential to store it safely as you cannot store it in a bank locker. A special software program is used to store bitcoins, and it is known as a bitcoin wallet. It is a digital locker that is used to store bitcoins as well as make transactions all over the world. It is highly secure as it can only be accessed through a unique private key. There are several types of bitcoins wallets in the market. So, you need to have knowledge about each one of them so that you can pick the one that suits your needs and requirements the most.

Which are the different kinds of bitcoin wallets?

Faith Based Events

Desktop wallet

A desktop wallet is a bitcoin wallet that you can install on your desktop like software and can use to store bitcoins as well as make easy transactions. It has an immensely user-friendly interface which makes it relatively easy to use. Almost every bitcoin wallet has its desktop version launched in the market. So, you can easily pick your favorite wallet and install it on your computer. A desktop wallet is a hot wallet which means you need an internet connection to use it. With internet connectivity, it also gets exposed to several online risks such as hacking, malware, etc. so, if you are using a desktop bitcoin wallet, you must ensure that you have a good antivirus and firewall installed in your system. Moreover, there are the different operating systems of different PCs such as Windows, Linux, Mac, etc. So, you must choose a desktop bitcoin wallet that is compatible with the operating system of your computer.

Paper wallet

If we talk about bitcoin wallets, the oldest form of wallet is the paper wallet. It is a piece of paper that has a QR code imprinted on it. The code has all the data related to the wallet, and it can be scanned to make a bitcoin transaction. It is not very popular nowadays as several digital and highly advanced wallets are available in the market. A paper wallet is a cold wallet which is why it is considered to be one of the safest wallets as there is no risk of hacking or phishing. However, paper wallets are not suitable for everyone as they need to handle with great caution and care. It is a piece of paper, and if it gets damaged or lost, you may lose access to your bitcoin wallet forever.

Hardware wallet

Bitcoin wallets are mainly used to keep the bitcoins safe from the online attacker. It is an offline or cold wallet that stores bitcoin without an internet connection. It is a physical USB device with which you can save your bitcoins and connect them to any computer system to access the funds held in it. It also has a small screen with few buttons on the side that you can use to navigate through different options.

You can connect it to any PC or mobile even if it’s infected with the virus, as hardware wallets are immune to viruses and malware. The only issue with it is that it is a bit expensive as compared to other options. But if you want maximum security for your bitcoins, it completely worth it to pay such a price.

Web wallet

Web wallets are online wallets that you can access through any web browser. It has a particular URL that you can enter in the browser and access your wallet. It offers excellent accessibility but is highly prone to DDOS attacks, malware, phishing, etc. It is quite risky as you don’t have control over your private keys, which means if the wallets crash or shuts down, you may lose your cryptocurrencies forever.