A Bitcoin wallet is an account for processing the transactions of digital or crypto currencies. Payment cannot be sent or received without this wallet. So, before you can get bitcoins, you need to own a bitcoin wallet.
There are 5 types of wallets, namely
- Desktop – It is the most secure way to store your bitcoins and is needed to be downloaded to your PC or Mac. In order to keep your wallet live and functional, you need to install and update a wallet program.
- Paper – In this type, your public and private key is printed on a paper and is an inexpensive way to store Bitcoin private keys. Since this wallet is under your physical custody, it is highly secured.
- Online – Among all types, this wallet is extremely easy to use. You can access it when you have a computer with Internet connectivity. Based on the type, the wallets are sometimes hosted and non-hosted.
- Hardware – They have an online and offline version and are called cold storage wallets since while processing transactions they generate keys only when needed. They are devices and are designed to hold the keys of users.
- Mobile – These wallets are applications that are downloaded on your phone from popular app stores. They are the most used wallets since they are mobile-based and are easy to use.
There are various advantages of using each wallet, so finding the best bitcoin wallet is based on your needs and is totally up to you.