Last Updated on: 21st November 2023, 09:57 pm
Every currency requires a wallet and since bitcoin is a digital currency, it also needs a wallet to be kept in and stored safely. The wallet is accessible through private keys that are only known to the owner of the wallet and nobody else. The bitcoin industry has been operating on different types of wallets. These wallets have their features and speciality that makes them different from each other. Users must acquire a wallet before they can own any type of cryptocurrency.
The different types of wallets are:
- Mobile wallets
- Desktop wallets
- Hardware wallets
- Internet wallets
- Paper wallets
The most popular type of bitcoin wallets is the mobile wallet. Everyone has their mobile phones with them anywhere they go so accessing the wallet becomes quick and easy. Mobile wallets are more convenient for people who use bitcoins to sell or purchase daily or handle bitcoin transactions regularly. The user just needs to download the right application of the mobile wallet and use the private keys to enter. Some applications also enable the user to access through QR scan codes or by one tap to the terminal as long as the device is in a near field communication service.
Mobile wallets can also become an easy target for hackers.
Computers or laptops can run the desktop wallet once it is connected to the internet. The keys in desktop wallets are stored separately in a hard drive which can be plugged. Exchanging a small number of bitcoins or managing micro-transaction can easily be done through desktop wallets. Since the keys are stored elsewhere, hackers cannot steal any private contents. But connecting via the internet increases the risk if the system is corrupted. To learn more about bitcoin security and its trading system you can consult the big money rush official website.
A very distinctive type of wallet, hardware wallets are external devices that store cryptocurrency. These devices are then plugged into a computer after which they require the access key codes to grant access. Some hardware wallets have a tiny screen on them that provide additional information about the wallet. These devices can be expensive but they are not prone to hackers attacking the coins and free from viruses too. The only problem with hardware wallets comes when the owner misplaces the wallet or it gets stolen in which case the currency will be gone forever.
Internet wallets or digital or web wallets are the second most popular type after mobile phones. To get into web wallets the user will require two things, a device to connect and a stable internet connection. Website is run by an organization that enables the user to exchange their cryptocurrency, sell or purchase it and keep it secure. Managing the coins and accessing them becomes useful anywhere the person can get an internet connection. But if the third party organization gets hold of the key codes or suddenly shuts down, then the owner can no longer claim ownership to any of their cryptocurrency.
A paper wallet is a document. The contents of the document contain a public address when the user receives bitcoins and a private key. This type of wallet is very secure since the owner has complete control over their wallet and access codes. Paper wallets are generated on websites after which the user can come up with their private key. Even though the keys are stored offline and cannot be hacked, the server that is being used to open for generating paper wallets should be secure from spies and bugs that can be monitoring the online activities.
The first-ever bitcoin bank called ‘Bitcoin Crypto Bank’ has been established that deals with bitcoin currency, handling the transaction in a risk-free and secure method. It is a private company that stands alone being one of the kind in the bitcoin industry. It works exactly how banks should work, a platform where bitcoins are deposited and withdrawn as per the owner’s demands. The website also claims to make huge profits with bitcoins without having to worry about any danger.
Choosing the right type of wallet will depend on the need of the user. It is an important decision to do a lot of research before settling down for a bitcoin wallet because after all, one can only be as secure with their cryptocurrency as the wallet they own. But always remember that no wallet can guarantee you 100 percent protection or defending your funds. You just have to take the risk but make the one you’ll regret less.