Bitcoin wallet – What are its different types and their functions?

Bitcoin is a decentralized cryptocurrency which means it cannot be seen or touched. It holds a massive value in the market, which is why everyone wants to invest in it. If you are planning to buy bitcoins, you first need to learn how to store them safely. Bitcoins are to be stored in digital wallets called bitcoin wallets. You can visit the site just click here if you want to become a successful bitcoin trader. You need to choose a bitcoin wallet that suits the most to your needs and requirements. So, to make the right decision, you need to learn about the different kinds of bitcoin wallets, and some of them are listed below.

Hardware wallet

Everyone wants to pick a bitcoin wallet that is the safest one, and when it comes to security, a hardware wallet is the good option. It is a bitcoin wallet in the form of a USB flash drive in which you can store bitcoins and carry them with you. Hardware wallets have an OLED screen which you can use to go through all the functions and select any one of them. It has no battery, and you can connect it to any PC to access the bitcoins stored in it and making transactions. It is an offline wallet that protects it from hackers, viruses and phishing, and it is the primary reason that it is considered the best safest one too.

They are highly secure but may not offer you good accessibility as you cannot access them over the Internet. The user interface is a bit complex which may make you face some issues if you are a beginner. If we talk about the cost, hardware wallets are a bit expensive as compared to other options, but if you want maximum security for your bitcoins, it is worth it.

Mobile wallets

One of the most popular bitcoin wallets nowadays is the mobile wallet. As understood from the name itself, a mobile wallet is a bitcoin wallet that you can access over your mobile phone and make transactions anytime and anywhere. You can download these wallets on your mobile as an application and access them anytime and anywhere. These wallets are highly convenient to use as everyone has a mobile phone nowadays, so you can carry the bitcoin wallet everywhere with you.

Mobile wallets offer excellent accessibility but are exposed to risks such as malware, viruses, etc. So, if you are using a mobile bitcoin wallet, you must make sure that it is encrypted so that it won’t get infected. Moreover, you should also ensure that the wallet is compatible with your mobile OS.

Web bitcoin wallets

Web wallets are bitcoin wallets that you can access over the Internet through any browser. It has an URL that you can visit to access bitcoins as well as make transactions. These are easy to use, but the issues with such wallets are that the private keys are stored in the browser, which makes it easy for hackers to gain access to them and steal your bitcoins. There are two types of bitcoin wallets; non-hosted and host wallets. You must choose a non-hosted one as it offers completed control over the funds. The web wallet is not secure, so if you are using it, you must keep small amounts in it for making daily transactions.

Desktop wallet

A desktop wallet is a wallet that you can install on your system like software. You must ensure that your PC has an efficient antivirus so that funds stored in the wallet don’t get exposed to cyberattacks. It is considered to be a safe option when it comes to storing bitcoins, but you need to take all possible precautions. Before using a desktop wallet, you must ensure that your PC is clean and there is no virus or malware in it. These wallets are highly accessible and have a simple user-interface. It offers excellent anonymity and privacy, and there is zero involvement of any third party or intermediary.

You need to take all possible precautions while using a desktop wallet as if the system crashes; you may lose access to the bitcoins forever. So, to stay on the safe side, you must create regular backups of your bitcoin wallet so that even if something goes wrong, you will be able to recover the bitcoins easily.