Types of Bitcoin wallets- blockchain
Bitcoin Wallet- First things first, you dont have to keep saving money before you buy a whole bitcoin, no, you can buy in fractions as low as you can afford, that being said, lets proceed.
Bitcoin is a digital currency as you already know by now and the wallets are mostly found online in the internet. Just like we have different banks for storing our fiat currency, we also have several bitcoin wallets for storing our bitcoins.
They are divided into
- Hardware and
- Paper wallets.
Some types may overlap or used in combination with each other. I’m going to touch on what to expect from each type and feature a few examples you can try out.
Desktop wallets Simply put is a form of bitcoin wallet or a standalone wallet that works on your computer. It has one of the highest form of security(if not the highest) and its not advisable to be used by newbies.
This are the type of bitcoin wallets that are most commonly used especially with the fact that there are various layers of security to pass before actually being able to access or transact. This is ideal for storing small amount of coins and also user friendly if you are new in the cryptosphere.
For large amount of coins though, its advised you store them in more secure options.
Online bitcoin wallet as the name denotes means bitcoin wallets that can be accessible from any device that has internet connectivity.
Its easier and faster to make transactions via online wallets due to its accessibility. Ironically, this also results in its cons as scammers and phishers can easily hack this wallets and make away with the bitcoins.
This has happened to Mt.Gox and Bitfinex in the past as they were hacked and the bitcoins of users stored there were stolen.Though i will try and mention credible wallets here, its also in your best interest to try and store large amount of bitcoins in offline devices.
The hardware bitcoin wallet are the method of choice for most large amount of bitcoin holders.This kind of wallet needs physical contact before you can access them hence it can not be hacked.
They are user friendly, portable and behaves like the traditional plug n play usb drives hence giving users power and complete authority over there bitcoins.
The Paper bitcoin wallet as the name implies means wallets in paper form that is stored offline and only accessible to you the owner, you have full control over your private keys. Its very safe though but at the same time very vulnerable in the sense that the bitcoins can be lost if the paper gets misplaced, torn, faded.
Its advised that you lock away in a secure vault because unlike other hardware bitcoin wallet, once the paper is tampered with, the bitcoins are lost forever and cannot be retrieved.
Examples of paper wallets
As a new user, it might seen confusing and daunting and you might not really get to decide on which bitcoin wallet to store your bitcoins with.
Well every wallet mentioned on this page has stood the test of time and have some level of credibility. You can try splitting your coins into 1 or 2 wallets hence minimizing the risks involved.