Learn about the different types of Bitcoin wallets

If you use coins, you need a wallet. If your transaction currency is cryptocurrency, then you need a wallet of the same nature: if you enter the bitcoin market, you need a bitcoin wallet.

Each bitcoin wallet contains a set of secret numbers, called private keys, that correspond to your access token. The keys provide control over bitcoins and provide security against hackers who would find it difficult to crack the code.

If you want to get your first bitcoins, now is the perfect time, as the market is bearish. But first, let’s take a look at the different types of Bitcoin wallets:

desktop wallets

Desktop wallets are those that can be installed on a desktop computer or laptop. Many desktop wallets have additional features, such as contract software and even cross-integrations.

The main drawback of desktop wallets is security. If the computer itself is hacked, you are vulnerable to exploitation. This means that the wallet can be hacked when the user saves their password on the same device.

The best examples of desktop wallets are Bitcoin Core, Armory, Hive OS, Electrum Wallet.

mobile wallets

Mobile wallets work almost like desktop wallets. The only difference is that it works well on other mobile devices and can process quick payments in physical stores using Near Field Communication (NFC). Scanning the QR code can make the transaction faster than usual.

These wallets are compatible with mobile operating systems such as iOS or Android. The level of security of some applications such as Bitcoin Wallet, Hive, and Mycelium Bitcoin Wallet has proven to be quite reliable.

web wallets

A web wallet allows you to store cryptocurrencies without having to download anything else. It also provides easy access because it can be used anywhere, which makes it one of the best options for Bitcoin wallet users.

As one can easily guess, the fact that it is constantly online weakens its security. The web wallet is already exposed to malware and phishing It can steal user passwords. This is why Coinbase, Blockchain, and Gemini all advise their users to always keep track of their cryptocurrencies and passwords.

Hardware wallets

They are also called Hardware wallets. It is considered the most secure type among the many Bitcoin wallets out there. This type of wallet stores private keys on a physical device that cannot be accessed by anyone online. Hardware wallets look like flash drives and need to be connected to a computer before you can access the cryptocurrency.

For those who want to know the entire history of Bitcoin, hardware wallets have been the biggest innovation that has made Bitcoin completely immune to hacker attacks. Although these wallets are safe, their price is not high either. Ledger and Trezor wallets usually cost between $100 and $200.

Having your own Bitcoin wallet is one of the first steps when deciding to enter the Bitcoin ecosystem. And if you’re new, let us remind you of this rule of thumb for any highly volatile investment: invest only what you can afford to lose.

source : Coinmarketcal.com

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Avatar for Luke Jose Adenaco

Luke Jose Adjinaco

Far from discouraging my enthusiasm, an unsuccessful cryptocurrency investment in 2017 only added to my enthusiasm. So I decided to study and understand the blockchain and its many uses and pass on my pen information related to this ecosystem.

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