A Bitcoin wallet is a wallet that allows Bitcoin users to store, receive and send bitcoins. Bitcoin wallets are important for any Bitcoin transaction as they help to facilitate the process by allowing users send bitcoins to other users. Read more about Bitcoin Wallets here:
3 Types of Bitcoin Wallets
There are several types of Bitcoin wallets that are used for Bitcoin transactions. We have wallets such as;
- Online Bitcoin Wallets
- Software Wallets
- Hardware Wallet
Online Bitcoin Wallets
The online Bitcoin wallet is a type of wallet that is accessed on the internet or a secured web browser. For security reasons, these wallets require a password for other to get access to it. The owner of the specific wallet sets the password. This password allows the user to access his /her wallet.
These wallets can easily be downloaded on a phone, tablet or a computer. The wallets downloaded on the phone could be referred to as; Mobile wallets.
The hardware wallets are built in the form of a small computer with the aim of creating Bitcoin private keys offline. The above are the types of Bitcoin wallets used for Bitcoin transactions.
Features of A Good Bitcoin Wallet
Note that before choosing the type of wallet to pick, there are some factors to consider. They are;
- Privacy Protection; Make sure that when picking a wallet, your privacy isn’t compromised.
- Ability to Control Private Keys; It is advisable to choose a wallet that allows you control your private keys. This is because it is not safe to rely on third parties hence; access to control your private keys is essential.
- Backup; when deciding on a wallet, make sure that such wallet provides backup features. This will enable you to retrieve any lost information. It is vital to back up your wallet all the time.
- Different Wallets; for security sake, it is advisable to make use of different wallets for a different amount of money. Putting all your money in one wallet is not ideal due to unforeseen issues. Therefore, having different wallets is one’s best bet
- New Address; for every Bitcoin transaction that is made, the user’s address becomes public. Due to this, make use of different addresses for every transaction that occurs. This is to help protect one’s account and identity.
The type of Bitcoin wallet you pick will depend on what features you want in your Bitcoin wallet. Below are a detailed explanation and example of the type of wallets that are available.
10 Online, Hardware & Software Bitcoin Wallets Review
Online Bitcoin Wallets
As mentioned above, this type of wallet is a type of wallet that is stored on an encrypted and protected online platform. All online Bitcoin wallet requires every user to generate a password to enable them to protect their Bitcoin wallet. There are various types of online wallets but among them are;
The Green address is a type of online wallet that allows users access their Bitcoins. The Bitcoins are accessed through various ways, which includes accessing it online or using a mobile app. Green Address is known to be easy-to-use and flexible. It also comes with a lot of features and a strong security system. This wallet is highly recommended for beginners. The advantage of this wallet is that it is flexible and easy to use. Being flexible helps to make sure that the user has a good time on the platform. The main disadvantage of Green Address is that it requires an app to load from a different.
- 2. Coinbase
This is one of the most popular platforms for the buying and selling of Bitcoins. Coinbase was founded in the year 2012 after being enrolled in the popular Ycombinator. It has raised over a hundred million dollars ($100, 00, 00) in funding. The world’s leading investors back Coinbase as they continually increase their user base. Its online wallet is user-friendly, users get to add their funds to the wallet and explore other features. However, the major disadvantage of Coinbase is the fact that the company could withhold a user’s money. This could be frustrating especially if the money withheld is needed urgently.
- 3. SpectroCoin
This is an all-around solution for Bitcoin users. The services offered by SpectroCoin include a variety of Bitcoin activities. Spectrocoin allows one to easily store, send and receive Bitcoins in a secure way. The company boasts of giving its users financial flexibility and all other amazing features. According to Spectrocoin, they protect their users’ wallets by advanced authentication methods. It also states that the digital currency is stored in a protected offline storage. This is to make sure that the digital currency of people is not exposed to potential threats.
Software Bitcoin Wallets
Software Wallets are those wallets that are available for download. They are software applications that are downloaded on phones, tablets, and even desktop.
They help to make it easier for users to access their Bitcoin wallet with just a single click! Furthermore, there are various software wallets such as;
- 4. Copay
This is a mobile Bitcoin wallet that comes in the form of an application. The application has an open source which allows certain users customize the app to their taste. All wallets on Copay are highly secured as it allows its users to take their security into their own hands by using multiple signatures. It also provides a shared wallet feature where users can share a wallet. Apart from all these, the mobile app allows people to have multiple wallets in one app.
- 5. BreadWallet
Another mobile wallet is BreadWallet. This type of wallet is available to IOS and Android users. The Bitcoin wallet app was the first of all launched as an IOS app before being available on Android. BreadWallet is one of the simplest Bitcoin wallets that assure its users of financial freedom and privacy. It does not require any personal information of its users. For security reasons, BreadWallet is much secured.
- 6. Mycelium
This is one of the most favorite trading mobile apps that are used by professional Bitcoin users. Mycelium is a mobile Bitcoin trading app that comes with several types of advanced accounts for users. Mycelium comes with many features that are essential to a Bitcoin trader.
- 7. AirBitz
This is another type of Bitcoin wallet that best suits day traders. It comes integrated with a Fold, which allows users to get discounts. Airbitz has a strong security system that helps protect the platform or app from threats. It regulates users to ensure the safety of the platform.
Hardware Bitcoin Wallet
The hardware wallets are built in the form of a small computer with the aim of creating Bitcoin private keys offline. Rather than storing one’s wallets online, you could use a hardware wallet. Why consider a hardware wallet? They should consider hardware wallets because they are the easiest way to store one’s bitcoins
- They are easy to set up.
- Hardware wallets are also very easy to backup and store one’s data.
We have various hardware wallets such as;
- 8. Trezor
This hardware wallet is an extremely small computer device which generates it keys offline. It has a quick setup, and it is easy to use. It provides many basic features needed by a Bitcoin trader. Trezor comes with a screen that copies down during backup. This wallet has a very strong security.
- 9. Ledger Nano
This type of wallet is created in the form of a smart card. This smart card-based technology generates and signs private keys. According to the ledger.Co, Ledger OS enables full orchestration of code and systems directly from the secure world. It is Secure, Open source, Asynchronous and Agnostic. The advantages of the Ledger Nano are;
- The Ledger Nano has a beautiful compact design
- .The Ledger Nano is an affordable when compared to others
- Security validation does not take time.
The disadvantages of LedgerNano include;
- The Ledger Nano is not used on phones.
- The hardware should be installed on a virus free website.
- 10. Keepkey
This is a hardware wallet that secures digital currencies. It is not limited to the only Bitcoin as it stores other cryptocurrencies like; ethereal, lite-coin, the same coin, It comes with a backup feature, secure storage, an enhanced recovery feature, virus and malware proof and so much more! Keep key comes with a high level of protection/security to help protect it from hackers.
In summary, we have a vast number of Bitcoin wallets that can suit a Bitcoin user’s need. Using Bitcoin; you are in charge of your privacy and your money’s security hence, it is your duty to make sure that you pick the right type of wallet.