Types of Bitcoin Wallets

Prior to sending a receiving bitcoin, you will need a place to store them. Choosing a wallet is the first step in receiving cryptocurrency. A quality wallet is essential in keeping your bitcoin safe.

There are different types of bitcoin wallets, wallets that cater to specific needs depending on security, convenience, the amount of bitcoin you keep, security, and what you want to spend. Here are the types of bitcoin wallets.

Web wallet Web wallets enable bitcoin transactions through web browsers. Web wallets offer ease and convenience, being accessible to manage your bitcoin simply with an internet connection. Many web wallets require you to deposit funds into their online wallets in order to use the online wallet. This type of wallet is least secure because you don’t have access to your private keys leaving you to rely on a third-party website to practice security measures. Its advised web wallets are only ideal in storing small amounts of funds. Desktop/Software wallet Wallets that are downloaded and installed on your computer are desktop wallets. They can only be accessed through that specific computer. Desktop wallets are easy and can be downloadable and store your private computer. Although more secure than a web wallet, this type of wallet allows more chances for hackers to access your private keys and thus your funds because it’s a requirement a computer free of security weaknesses. Those using a desktop wallet should be wary of viruses, water damage to their computer. Hardware wallet Physical devices that store your private key and secure cryptocurrency. The fact that hardware devices cannot be hacked and when used on public machines or the internet makes them the securest form of wallet. A downside may be that you always need to have your hardware device to make transactions meaning carrying it with you always. However, hardware wallets come with a price, although it may be worth it to users with a large number of funds. Paper wallet Paper wallets are just pieces of paper with the private key written on it or in QR code format Whoever has access to the paper is the only person who has access to the wallet. The downside of a paper wallet is that it can be easily destroyed or misplaced. Brain wallet It is a way to create a private key out of a chosen text or set of words. It gives the user to determine a passphrase making it more personalized to them. The downside to brain wallets is less secure and have a greater chance of being hacked as passwords are not randomized. Mobile/ Electronic wallet This type of wallet stores your private key on your mobile device through apps. Because of this they are highly convenient and are user friendly, you shouldn’t hold large sums of funds in mobile wallets. Mobile apps offer lows privacy and are less secure because it allows access to your wallet through internet connections. But because phones can be lost, broken, or stolen, those with mobile wallets should back up their private key.

How to Get a Bitcoin Wallet

Receiving a bitcoin wallet simply depends on the type of wallet you choose to keep your bitcoin. Paper wallets can be generated using services like BitAddress or Bitcoinpaperwallet which allow users to create bitcoin addresses and private keys which can then be printed to be stored offline.

As for mobile wallets, there are many bitcoin wallet apps running on Android that makes daily basis trading possible such as Free wallet, Edge, Atomic Wallet, Lumi Wallet, Blockchain Wallet, Copay, Jaxx, and Mycelium.

Web wallets can be used on a device that’s connected to the internet on websites such as Coinbase, Lumi Wallet, circle, Blockchain, Strongcoin, and Xapo.

Desktop wallets are downloaded and installed on your computer: Electrum, Exodus, Atomic Wallet, Copay and Armory to name a dew. Hardware wallets, the most protected type of wallet through a device such as a Ledger Nano S, Trezor, or a KeepKey.