The cryptocurrency world has been expanding in recent years. A large number of individuals all over the world is now handling Bitcoin (BTC) and other virtual currencies. However, not all of them know how to better handle their funds and how to protect them.
One of the main things you need to know is that you hold your BTC coins in Bitcoin wallets. These wallets are considered to be the best way to store your Bitcoins considering they are certainly going to be safe and secure.
With these wallets, you can send and receive Bitcoin in a fast and easy way. You will also be able to pay for goods and services or just store your funds for a longer period of time. One of the wallets you can start using is Bitamp, an easy-to-use and open-source Bitcoin wallet.
Understanding Bitcoin Walltets
There are different Bitcoin wallets that would be used for different situations. Not all of them are the same and not all of them are going to be used in the same situations. In the next sections, we will be sharing with you the main different Bitcoin wallets you can find in the market.
Bitcoin Hardware Wallet
Bitcoin hardware wallets are certainly the most secure wallets in the industry. Why? Because they are simply storing your private keys outside the internet and other devices. That means that there is no way a hacker could steal your funds unless he has physical access to your hardware wallet and knows your PIN or password have access to it.
These hardware wallets are generally as big as a pen drive and they can be connected using Bluetooth or cables with the owner’s computer. Some versions of these wallets have partnered with third-party apps so users can acquire virtual currencies directly using these devices.
Bitcoin hardware wallets are the best option if you want to hold your funds for a long period of time. They are not going to be the best if you want to make daily purchases or buy goods on the go when you are outside. Nevertheless, as we mentioned before, they are the most secure wallets you can have to hold your Bitcoin.
Bitcoin Desktop / Mobile Wallets
These are perhaps the most popular kinds of wallets available in the market. Users can simply download an application to their smartphones (Mobile Wallets) or a program to their computers (Desktop Wallets) and start receiving, sending and storing Bitcoin.
Despite the fact that they are very secure wallets, they can be hacked. If the user installs by mistake a malware, then hackers could eventually have access to users’ funds. This is why hardware wallets were created. This, however, does not mean that they are not secure. As long as you are sure that your computer or smartphone is protected, then these should be a great option to use.
The main benefit and advantage of these wallets is not only their ease of use, but also their portability, specifically for mobile wallets. Bitcoin holders that want to spend and use their coins on a regular basis to acquire goods or services would fin mobile wallets to be the best option.
Desktop wallets, instead, are mainly used to be connected to different decentralized applications and to store several digital assets rather than just Bitcoin.
Online wallets are those that can be accessed through an online services provider. These firms are usually very secure considering that hackers could try accessing users’ funds through the internet.
These are wallets that users can be sure they can access at any time, no matter where they are or whether they have their smartphone or not. With a simple computer, users can have access to these online wallets and start handling their Bitcoin in just a few seconds.
If you are looking for a secure crypto wallet, then you should consider using solutions that allow you to have your private keys. Bitamp, for example, provides users with access to their private keys and seed phrases. This would allow you to be the real owner of your Bitcoins.
One of the most popular mottos in the cryptocurrency industry is “not your (private) keys, not your Bitcoin.”
Bitcoin Wallet Conclusion
This guide aimed at sharing with the readers which are the main crypto and Bitcoin wallets available in the market and how they can select their own solution according to their needs.
Hardware wallets are going to be very useful for long term holders; desktop and mobile wallets will be good for people that like to use their coins on a regular basis; finally, online wallets were created for users that need to have easy access to their Bitcoin and also portability on a daily basis.