Bitcoin enables exchange of money in a different way than with usual banks. Bitcoins are basically new cryptocurrencies that are still actively developing day by day. Cryptocurrencies like Bitcoins are traded via the Bitcoin wallet that enables the receiving and sending of Bitcoins.
Bitcoin wallets come in different types. Each kind of Bitcoin wallet has different functionalities and characteristics. It is very important for one to choose the right Bitcoin wallet.
But firstly, let us get introduced to the different kinds of Bitcoin wallets.
Desktop Bitcoin wallets are those that can be installed on a desktop computer. Desktop wallets provide complete access to the users, enabling them to create a public Bitcoin address and private key for sending and receiving Bitcoins. Some of the Desktop Bitcoin wallets include – Green address, BitGo, MultiBit, Bitcoin core, Bitcoin Knots etc.
Mobile Bitcoin wallets are applications that are installable on a mobile phone. Different Mobile Bitcoin wallets are available that are compatible with all types of mobiles like iOS, Android, Blackberry and Windows. Unlike desktop Bitcoin wallets that are fixed in one place, mobile Bitcoin wallets allow the user to trade directly from anywhere. Mobile Bitcoin wallets carry the same functionalities as that of the desktop Bitcoin wallets, but with an added advantage to allow the user to trade anytime and from anywhere. Some of the mobile Bitcoin wallets include, breadwallet, Simple Bitcoin, Coin.space, Bitcoin wallet, Hive Android, Mycelium Bitcoin and so on.
Hardware Bitcoin wallets also known as cold storage, are reportedly the most secure and safest way to store Bitcoins. The number of hardware wallets is limited in number. Hardware Bitcoin wallets store Bitcoins in an offline environment, and can hold private keys electronically. Ledger Nano S and Trezor are the two popular hardware Bitcoin wallets.
Web Bitcoin wallets, also known as hosted wallets allow users to access the wallets from anywhere from a mobile or a desktop from a browser via a web source. These wallets are basically web services that are made accessible from any web or internet based browsers. Web Bitcoin wallets stores the user’s private keys online, and the Bitcoins are stored on the servers of the agency which the user has chosen as their online wallet. CoinBase, Blackchain, Xapo, Binanse are some of the web Bitcoin wallets.
Paper Bitcoin wallets as the name suggests, are wallets with the Bitcoin public address and private keys printed on paper. The user can use the public address to send Bitcoins and the private key to transfer or spend the Bitcoins. Paper Bitcoin wallets are printed wallets on paper and the keys are available offline in the form of print. Users need to store the paper in order to avoid theft/ loss of the paper Bitcoin wallets.