Bitcoin wallet options explained

So, you have decided to buy some Bitcoins? Congratulations on your decision because it appears that this cryptocurrency has a great potential. This means that it is probably wise to invest I Bitcoin, and other kinds of cryptocurrency today. But, before you go on the Internet and start buying Bitcoin, you should look for a place where you can store your precious investment. This place is known as a wallet. But, instead of a physical wallet with compartments and buttons, you will get a virtual place with a private key that lets to access your unique bitcoin address. It’s good to point out that these special wallets can be placed on your mobile device or computer, on a physical device, or even come in a form of paper.

Online wallets

Online wallets are actually cloud-based wallets that are very convenient. With their help, you can get access to your Bitcoins from your computer, laptop or smartphone regardless of your location. All you need is the password and that’s it. In most cases, online wallets designed for bitcoins are completely free. However, you can’t expect perfect security and safety from these wallets. It is possible for hackers to get the password to your wallet and use your bitcoins to buy things online without getting caught.

Software wallets

It is possible to install a bitcoin wallet on a computer. Once again, almost all of these software wallets are free and it doesn’t take much time before you understand how they are working. The biggest downside of using software wallets is that you have to conduct more maintenance activities. By maintenance, we mean regular backups. Don’t forget that in case someone steals your computer or your computer becomes corrupted and you have not stored the bitcoins in another place, you will lose your coins.

Paper wallets

Although it sounds a little bit odd, users can also use paper wallets to store their bitcoins. As the name suggests, we are talking about papers on which you can find information about the public and private keys of bitcoin addresses. Experts suggest that this a good option for those who are planning on keeping their bitcoins for a longer period of time. At the same time, you should consider paper wallets if you are planning on giving bitcoins as gifts to other people. Similar to the other bitcoin wallets, this one comes with one downside and that’s the higher chances of losing the wallet.

Hardware wallets

In the recent period, more and more people are showing interest in hardware wallets. These wallets come in the shape of relatively small devices that are connected to the World Wide Web from time to time. They have to be connected for a brief period only to complete bitcoin transactions. This is probably the safest form of bitcoin wallet you can find on the market today. The reason is simple – they are used online only for a short period of time. Of course, it’s possible to lose them or for someone to steal them.

Mobile wallets

We will finish this list of Bitcoin wallet options with mobile wallets. Obviously, they are designed as applications that people can use on their smartphones and tablets. They have proven to be an ideal solution for people who use Bitcoins to shop things in physical stores or in case they want to trade, sell or buy Bitcoins on the move. The online wallets we’ve mentioned before have mobile versions and there are some mobile wallets that don’t have other forms like Bread and Airbitz for example.

Hopefully, this article will help you choose the right Bitcoin wallet for you.

2018-03-21T12:13:17+00:00