Various Types of Bitcoin Wallets to Choose from!

Bitcoin WalletsBitcoin Wallets

The Technology of Bitcoin is growing up leaps and bounds and is increasing the curiosity and attraction of people. People are investing immensely in Bitcoin and want to become rich quickly sitting at home in the most amazing way possible.

If you too are one of such people, then obviously you must also be facing the issue of looking for the right wallet for Bitcoins.

With so many options for Bitcoin wallets available in the market, it may be confusing for even you to get a perfect Bitcoin wallet which consists of security, performance and convenience feature.




So, here I am with this article. It will provide you with important insights for choosing the right Bitcoin wallet!

What is a Digital wallet?

A digital wallet is also known as e-wallet stores user’s Bitcoins and information of the user’s private eyes. Apart from that Bitcoin wallet allows people to do the transaction process with so much ease. The best about Bitcoin wallets is that they can also be used for mobile transactions.

As the Blockchain system is a complicated process. So it is quite a tiring task to get the right crypto-currency wallet.

Let me tell you that there are five kinds of Bitcoin wallets available: online, mobile, desktop, hardware and paper wallets.

Online wallet:

The online wallet runs on the cloud system this wallet can easily be assessed from multiple devices with the help of the Internet connection. Online wallets are so easy and convenient to use. However, due to it’s an online feature, it increases the risk of theft and fraud. So, you need software that provides you with extra layers of security.

Mobile wallet:

Mobile wallet is very portable and comes in handy if you are looking for a wallet that you can carry always with you in your pocket. The advantage of having a mobile wallet is that you can pay physically in the stores.

It is much safer as compared to the cloud-based wallet. However, there is a risk of losing assets in case your phone gets stolen or lost.

Desktop wallet:

Desktop wallet is another famous choice of people and again I would say that it is better than an online wallet. All you have to do is to download the software in your PC and install it and you are good to go.

However, if your computer is infected with a virus, then you can be in trouble.

Paper wallet:

Paper wallets are the safest option until now for storing Bitcoins. It is actually a physical copy that has both the public and private address. You can use the official public address to transfer the funds and private keys for withdrawing all the money. You can also scan the QR code for the same.

Hardware wallet

The hardware wallet stores all the private keys of your account in a USB device and thus they can easily make online transactions. The hardware wallet remains offline most of the time and that is it’s the biggest strength. The hardware wallets are compatible with most of the web interferences and that is the reason why it is the first choice of the traders.

Apart from that, the hardware wallet is also capable of sending and receiving crypto-currency merely plugging in the device on the Internet which is an added advantage.

Wallet security

When the question arises of security of your wallet, there are a number of things to pay attention to:

Hot and cold wallet

A hot wallet refers to the online wallet like cloud and desktop wallets that are connected to the internet whereas the hot wallet is the offline wallet like the desktop wallet. However, keeps all your eggs in one basket as it may be your big mistake and you may end up incurring a huge loss. The best way is to keep a healthy balance between the hot and cold wallets.

Anonymity

Though your wallets are not connected to your ID, but still a skilled hacker and easily stalk you back through your wallet data and if such thing happens you may become the victim of online fraud or scam.

Which cryptocurrency wallet is the best?

To each it’s own. You cannot just point out to a single wallet and say that it is the best. Each Bitcoin wallet has its own sets of features. It also depends on many factors like:

Which crypto-currency are you trading?

Do you plan a short-term or long-term trading plan?

What is the security standard that you prefer?

Does it allow you to make quick purchases and withdraw your money whenever you want?

Here are some of the wallets good for single currency type:

Bitcoin: Bitcoin Core Wallet, Mycelium or Electrum.

Ethereum: Ethereum Wallet or MyEtherWallet

Litecoin: Litecoin-QT

Dash: Dash Core.

For multiple type crypto-currencies:

Jaxx Wallet:

 Jaxx wallet is used to store Bitcoin, Bitcoin Cash Ethereum, Ethereum Classic, Litecoin, Dash, Zcash and dozens of other cryptocurrencies.

Coinomi:

 Coinomi supports 64 cryptocurrencies and is one of the best mobile wallets on the market. The only downside is that at the moment it currently works with Android only.

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This post was last modified on March 25, 2020 7:28 AM

Categories: Technology