Bitcoins have no physical appearance, so they cannot be stored in a bank or vault. There are specialized digital wallets that are used for saving bitcoins. These are bitcoin wallets, and there is a massive variety available in the market. There are several types of bitcoin wallets in the market, and to choose the best one, you need to understand each one of them.
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Desktop wallets
These wallets are the ones that you can install on your computer system. Desktop wallets store the private keys on your computer’s SSSD or hard drive, which makes it easy to access. These wallets are highly convenient to use and offer better security as compared to other hot wallets such as web wallets, mobile wallets, etc. The best feature of desktop bitcoin wallets is that they don’t involve any third parties, which means you have complete control over the private keys, which minimizes the risk of any data breach or theft. However, these wallets stay connected to the Internet, which exposes bitcoins to some risks such as hacking, phishing, malware.
There is a wide variety of desktop wallets available, and each one of them serves a different set of needs and requirements. So, you need to compare all of them, check their features and pick the ones the seem to be most suitable for you. Moreover, before using a desktop wallet, you must ensure that there is enough empty space on your hard disk so that you won’t have to face any problems at the last moment.
Hardware wallet – immensely secure
There are so many bitcoin wallets, but whenever a person thinks of a good wallet, the first thing that comes into his mind is security. The basic use of a bitcoin wallet is keeping the funds secure, and it must be efficient in doing that. If you are looking for safe storage for bitcoins, a hardware wallet is the best option. It is the safest way to store bitcoins as it is a cold or offline wallet. So, without an internet connection, there is no risk of hacking, phishing, etc. Moreover, it is highly encrypted and safe from viruses and malware. In simple words, you can connect the hardware wallet with any device even if it is infected, as no virus or malware can harm the hardware wallet.
Hardware wallets are also easy to use as they have a small OLED screen on the top in which you can access all the options and make transactions easily. When you start using a hardware wallet, you need to verify the details as it created a recovery phase and helps in recovery if you lose the bitcoins. But while choosing a hardware bitcoin wallet, you must check its authenticity as there are some fake one which you need to avoid.
Online exchange wallets
Another popular type of bitcoin wallet is the exchange wallet. These are also known as web wallets which you can access over the Internet. These wallets are linked to the online bitcoin exchanges and store the private keys on the server. Different types of web wallets offer varying features, and some allow you to link the wallet with your mobile wallet, whereas some of them also allow you to replicate the addresses. These wallets are highly accessible, and you can access them from anywhere over the Internet. The funds stored in the web wallets are controlled by the company which is operating the website. They also have control over the private keys, which makes it a bit unsafe.
So, it is highly crucial to check the reputation and reviews of the web wallet before choosing it because if you pick a fake web wallet, you lose your bitcoins forever. Moreover, such wallets are the primary target of hackers, so you need to be a bit extra careful while using them. You must keep one thing in mind that never open any malicious link or web page on the computer on which you are using the web wallet. Phishing scams are one of the most common frauds that you need to be aware of while using a web bitcoin wallet.
