If you are taking a plunge into the world of bitcoin, then the first thing you should know is to find the right and reliable place where you can store the bitcoins. There are different types of bitcoin wallets available. It is up to you to choose the right one that meets your needs and requirements. The wallet is a safe place to hold bitcoins. It does not hold any coins, but a private key losing which you lose all the bitcoins stored. The bitcoins are not available in any of the physical forms like the conventional currency. The physical currency can be kept in the pocket or stored in the banks. The digital currencies would make use of technology to operate and would be stored in the digital wallet known as a cryptocurrency wallet.
The the official App for cryptocurrency wallet is software or an application that would let the bitcoin holders send, receive and store the bitcoins in the wallet. It is alike to that of the bank account where you would store money and carry out the transactions. It is easier for you to download the application on the mobile or access the wallet using internet connectivity. There are flash drives available for you to store the bitcoins safely and securely.
Different types of crypto wallets
Two types of wallets are available. These include – hot wallet and cold wallet. These wallets are further divided into different types. You should know about each of the bitcoin wallets so that you can choose the right one that fits your bill.
The hot wallet is the most popular wallet that is used in the cryptocurrency world. The hot wallets are the digital wallets that work when you connect to the internet, and you can download them on the Smartphone to start using. The main reason for the hot wallets to gain popularity is due to the lower price.
Many wallet providers are offering the web wallet for free. You can access the wallet by signing-up and submitting your personal details. The wallet is available in the form of an app and can be accessed through the web browser.
It is the hot wallet that you can install on mobile devices. It is highly convenient to use and simple even for the bitcoins users who are new to the world of cryptocurrency. The mobile wallets are perfect to be used by the people who would like to use bitcoins for making offline shopping, transfer money and for paying the bills. You can also use the bitcoins for various purposes. It is a hot wallet that you can access through the internet and is prone to security threats. It is the reason that a cryptocurrency owner must be careful while choosing the wallet. The bitcoin owners should select the wallet that comes with high security and two-factor authentication. Along with this, the bitcoin wallet must offer multi-signature technology.
If you are planning to buy a hot wallet, you need to check the safety and security features. More importantly, the reputation of the wallet provider needs to be considered.
The cold wallet is the one that you cannot access through the internet. These wallets are available in the physical form. In the physical device, you can store the private key safely.
The wallet is a portable device that would be a kind of flash drive. You can have quick access to the bitcoins that are stored in the flash drive as you do not need any internet connectivity to access them. There is no harm in using these wallets as it is not prone to any cyber-attacks. You can store a lot of bitcoins in the hardware wallet than in the online wallet.
Even if the hackers gain access to the drive, they won’t be able to access the bitcoins as a strong password protects it. It is recommended to keep the cold wallet in a safe and secure location.
It is a kind of cold wallet that you can store on the desktop. You can have control over the private keys and the bitcoins in the wallet. The desktop wallet would be acting as an address which let you send or receive the bitcoins.