CRYPTOPEDIA

Bitcoin Wallets: Types, Best Practices, Advices

Think in advance! Choose the best wallet for your cryptocurrency

First and foremost, you need to think of a storage, where you will keep your BTC. There are different types of cryptocurrency wallets and you will have to choose the one, which fits your expectations and preferences. Different crypto wallets have different types of storage, surveillance and access. It is worth noting that a storage does not keep your BTC from a technical point of view. Alternatively, a wallet holds special keys, which are important for accessing your personal address and spending cryptocurrency that you have bought earlier.

There are 5 major kinds of Bitcoin wallets:

  • desktop
  • mobile
  • online
  • hardware
  • paper

More about crypto wallets 

Desktop wallets

This type of wallet will be installed on your PC and will ensure 100% control of the savings and relative security. You can choose a thick desktop wallet, which will enable you to download blockchain network and control trustworthiness of the transactions along with carrying out authentic security operations. However, downloading all blocks is not necessary so you can efficiently download a thin desktop wallet on the other available devices. You can choose various types of desktop wallets, which can be effectively used as bitcoin wallet iPhone and Android-based.

Among the best options of desktop wallets are ArcBit, Armory, Bitcoin Knots, Bither, Electrum.

Mobile wallets

Many users prefer mobile wallets, because the funds are always available to their owner. It is a very comfortable, especially for those users, who are willing to use Bitcoin or other crypto to use it in everyday life (for example, to pay for products, in the shops, etc.). All you need is a smartphone to scan QR-codes on the goods or websites, no other information is required. It is important to mention that you will not become a full Bitcoin user if choosing mobile wallets simply because you do not download the full blockchain information to your private device. Most smartphones do not have enough space to store entire Blockchain network, which is expanding every day.

Among the best options of mobile wallets are Coin.Space, Edge, Green Address, Simple Bitcoin, Green Bits, Bitcoin wallet, etc.

Online bitcoin wallet

You private keys will be kept online if choosing an Internet-based wallet. The most important things that you need to know about this type of wallet – the server will be controlled by a third party and you will need access the Internet in case you decide to manage your funds. Thus, you will always be able to access and manage your Bitcoins from any part of the world, but there is also a risk that the server can be hacked and your funds will be lost.

Among the best options of online bitcoin wallets are BitGo, Coin.Space.

Hardware wallets

Hardware walltet are special compact devices that keep private keys or passwords and sometimes help with payments and other crypto related activities. It is worth mentioning that there are many types of hardware wallets (Pi Wallet, TREZOR, Ledger Nano, Ledger Unplugged, KeepKey) and you are able to store any amount of money with their help.

Paper wallet for bitcoin

Paper wallet for Bitcoin is a legal agreement which includes all information in order to create any number of private BTC keys and to generate a wallet of special keys. Nonetheless users apply this term to ant form of storing funds offline.  For example, they can use printers or online BTC generators. Paper Bitcoin wallet is a document containing all of the data necessary to generate any number of Bitcoin private keys, forming a wallet of keys. However, people often use the term to mean any way of storing bitcoins offline as a physical document. People are able to create paper wallet by themselves using printers and bitcoin address generators.

Some people believe that paper wallets are one of the best and safest types of wallets. What is a paper wallet? It consists of 2 QR-codes or a list of numbers, which are created independently and kept in privacy. The first QR-code is a public key, which you will use in order to receive funds from other users and a private key, which is used for sending BTC to other addresses. This offline bitcoin wallet can be effectively used for storing cryptocurrencies and you do not need to have laptops or smartphones to use it.

Core Bitcoin wallet

Core Bitcoin wallet with a high level of privacy and security can also be a good idea. Among the major advantages – you will become a full Bitcoin member, which is important for some operations. However, you need to have a lot of memory on your device in order to store full Bitcoin blockchain. This type of a wallet guarantees transparency, validation, privacy and control over your funds. Just like bitcoin wallet Coinbase, which is one of the trustiest and prestigious wallets in the world of Bitcoins, core Bitcoin wallet is supported by the world community and widely used.

To conclude with, there are many types of Bitcoin Wallets. You need to think properly, which type you prefer and what factors you consider when choosing one. Choosing a good BTC wallet is the first but a very important step to the success. Free Bitcoin wallets are also available for users, so everyone can find an option, which fits them.

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blockchain, ICO, bitcoin, ethereum, mining

CRYPTOPEDIA


Bitcoin Wallets: Types, Best Practices, Advices

Published by blockchain, ICO, bitcoin, ethereum, mining