By definition, a bitcoin wallet is a software program for storing Bitcoins. However technical wizards understand that bitcoins are not really saved anywhere, but each Bitcoin address comes with a private key that is stored in the Bitcoin wallet. This feature is what is responsible for the safety that bitcoin wallets provide. There are several types of Bitcoin wallets, this can make the selection of a secure wallet a cumbersome and somewhat tiresome process.
The danger around the use of Bitcoin is that there is no regulation provided by banks or governments. Thus, once a transaction is made, it cannot be traced. The level of anonymity offered by Bitcoin is as impressive as it is scary. Therefore, when selecting a bitcoin wallet, it is imperative to choose only the best. As a precaution, one must encrypt their wallet using a strong password. For those using online wallets, the next move would be to boldly store the password offline. Ok, so here are the most popular bitcoin wallets.
Types of Bitcoin Wallets
Mobile—these are an improvement from the desktop wallets. With mobile elements, the aspect of mobility is factored into the equation. Where users were initially limited by desktop wallets being fixated, these wallets eliminate that issue. Using a ‘touch-to-pay’ feature, mobile wallets make it possible to purchase in physical stores and get the price scanned via a QR code. Once installed and run on the smartphone, this wallet can be used anywhere, on the go.
Web—web wallets take the first place for most modernized Bitcoin holders because they can be used from just about anywhere. These wallets are fully functional on any web browser or the mobile platform. For this reason, web wallets have been termed as the best bitcoin wallet on the market. Big players are offering the services of a bitcoin wallet, so the options are unlimited.
Desktop—these types of wallets are to be installed on the desktop computer. After installation, the owner has full control over the wallet. It goes without saying, as far as security and privatization go, the owner is entirely responsible for installing their own measures. With a desktop wallet, purchases can only be made from the position where the desktop is situated. Since desktops are not mobile, this causes a serious limitation to use.
Hardware—although available in limited quantities, hardware wallets are high performers. From a hardware wallet, it is possible to facilitate payments and store private keys. There isn’t much information available to the public, but one thing is certain, their level of security is expected to be tight.
Now that you are aware of the different types of wallets available, you need to make responsible decisions. Take the time to educate yourself before jumping into the train. Since Bitcoin tends to be more complicated and very different from the fiat currency you use for everyday processes, it is essential to understand it for what it is. Be sure to find the best bitcoin wallet and take the necessary steps to secure your wallet. Most importantly, it is imperative to bear in mind that it is your full responsibility to protect your property.