Bitcoin is a digital currency which means it has no physical appearance. So, the biggest confusion in the mind of people is that how to store bitcoins. If you want to make an investment in bitcoins, you must visit bitcoins cycle. There are numerous wallets available in the market. All of them have different features, user interface and fees. You can learn about some of the common types of wallets in the subsequent paragraphs.
Two major types of bitcoin wallets
Before you learn about the different variety of bitcoin wallet in the market, you must learn about the two major types of bitcoin wallets. All the bitcoin wallets are classified into two categories; Hot wallet and cold wallet.
The hot wallet is an online wallet that allows you to store bitcoin over the Internet and access them online. These wallets offer maximum accessibility but lack security. As they are always connected to the Internet, it exposes them to several online risks such as hacking, phishing, malware. Hot wallets are mainly popular as they are available at minimum cost and helps users to save a lot of money.
The cold wallet is the second type of bitcoin wallet, and these wallets are offline. They are not connected to the Internet, which is the primary reason that they are considered to be the safest option when it comes to storing bitcoins. No internet connection ensures that there is no risk of hacking as no one can steal your bitcoins if there is no internet connection.
A hardware wallet is a type of USB device which stored public addressees& private keys. It is like a USB drive with a small OLED screen as well as few buttons for navigation. You can connect it to any computer to gain access to the bitcoin stored in it and make transactions all over the world. Hardware wallets are usually expensive when compared with other wallets, however the security they offer is impeccable, which makes it worth to pay a high price for them.
If you are looking for maximum security for your bitcoins, you can trust on hardware wallet with closed eyes as it will safeguard your funds from all kinds of online thefts and risks. Moreover, you can connect it to any computer or mobile device anytime and anywhere as it is immune to all kinds of viruses and malware. So, you need not worry if there is any antivirus or firewall installed in the system or not.
This is a unique type of bitcoin wallet as it is a piece of paper on which private keys are printed in the form of a QR code. It is also a cold wallet that immunes it to all hacking attacks, but there are some features that make it risky to use paper wallets. The first and most prominent issue with a paper wallet is that it doesn’t allow you to send partial funds, as you can do with other digital wallets. You can use a paper wallet only once to send all the funds stored in it.
Adding to it, you need to be highly cautious while using paper wallets as it is a small piece of paper. So, there is a massive risk of losing it or getting it damaged. It makes it a bit difficult to handle a paper wallet as you need to store it in a safe location so that it doesn’t get damaged.
When it comes to accessibility, mobile bitcoin wallets is the best option. These are the wallets you can access using a mobile phone and do transactions anytime and anywhere. It is one of the most popular bitcoin wallets nowadays as everyone prefers having access to their wallet through the mobile phone. If you are choosing a wallet, you must check if it’s compatible your phone. There are different OS used in different phones. So, you must keep that in mind and choose a mobile wallet that is compatible with your mobile phone and offers the best accessibility.