Are you new to cryptocurrency? The plethora of information that is online can be overwhelming. All you need is to understand some basics, and the rest can follow later. Among the basics that all beginners need is knowledge about the different types of Bitcoin wallets.
A cryptocurrency wallet gives you access to your cryptocurrency and can be used to accept or send cryptocurrency. The concept is derived from the physical wallet that people use to carry fiat cash and some other things like credit cards. Due to the advancement of technology, there are many wallets that are available today. As we are going to see, each has pros and cons, which make it very important for a beginner to choose carefully.
When Bitcoin was introduced, this was among the first types of wallets available. Basically, it is installed on a desktop or laptop computer locally, and the main idea is for it to operate from there. Therefore, the user cannot access her or his wallet or send Bitcoin from any other device. The good thing about this wallet is that it is not vulnerable to hacking unless someone gets access to your machine. Desktop wallets are very popular.
Just like the desktop wallet, this wallet is installed on a mobile device like a smartphone. Basically, it is in the form of an app that is compatible with both Android and iOS devices. Using this option has the benefit of mobility. Being able to use a Bitcoin wallet from a mobile phone is especially convenient. However, you could lose your Bitcoin if you lose your phone.
This option is very common today. Your wallet is stored online using cloud technology. Therefore, it can be accessed from any part of the world and from any device that is connected to the internet. The experts at NakitCoins recommend using this method for convenience. However, it is prone to hacking especially when you try to access it from a public internet connection.
Although it is a less frequently preferred option for most people, using dedicated hardware to store your Bitcoin wallet is still an option that you have. USB sticks are common for this purpose, although there are other dedicated devices that are used today. A physical wallet device is risky to use because others can control your Bitcoin if they find this device. If you want to store your Bitcoin in a safe somewhere, this is the method to go for.
It is unusual to find people using paper Bitcoin wallets in this era. QR codes that are printed with details of your address and private key are part of paper wallets. You can receive Bitcoin when people scan your QR code during the process of sending. However, you will still need a device like a computer or mobile phone.
With all these options, any beginner will be in a position to pick a favorite. Make sure that you research even more to understand these options.