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Bitcoin Wallets

Online Bitcoin Wallets

There are different types of cryptocurrency wallets that could be classified into two major categories, i.e. hot storage wallets and cold storage wallets.

Hot storage wallets are one that is connected online, whereas cold storage wallets are offline modes of wallets. Hot storage wallets could be wallets that exist online in the form of a web application, whereas cold storage wallets could be desktop applications that are installed onto a personal computer.

Desktop Wallets

These are a form of cold storage wallets where the application is installed on the desktop. They are one of the secure forms of wallets as these types of wallets are not connected to the internet. However, the major issue with these wallets is they are prone to virus attacks. Examples of Desktop Wallets include ExodusElectrum, and more that we shall see individually in the relative pages.

Online Wallets

Online wallets as the name suggests are wallets that exist online in the form of a web application. These kinds of wallets have a major advantage of easy accessibility, but a third party holds control over it so your data might get breached.

Mobile Wallets

Mobile wallet is mobile applications that could be used using smartphones. These kinds of wallets lack many features, but when it comes to the basic functionality of sending and receiving funds, this wallet could do that. BRD Bitcoin wallet is one of the well-known mobile application wallets, and it supports almost all the major cryptocurrencies.

Exchange Wallets

To buy and sell cryptocurrencies online, cryptocurrency exchanges are used. These exchanges also support wallets to perform online transactions on these exchanges. Binance and Coinbase are a couple of well-known exchanges in the crypto space. 

Hard Bitcoin Wallets

Hardware wallets are the most commonly used type of wallets. These kinds of wallets are secure and safe as they are only used when required and could be unplugged when they are not in use. Hardware wallets are made secure both from inside and the outside.

As these wallets have a threat of damage from falling or a hit, the hardware is designed from material that is not so easy to break. One of the threats carried by hardware wallets is that they could be stolen. It is important to store hardware wallets in a safe and secure location. Trezor and ledger are a couple of examples of hardware wallets.

There are many hardware wallets available in the market that offer different features. We will discuss a few of the famous and most trusted hardware wallets.

Ledger Nano

Ledger Nano is a small-sized hardware wallet having excellent security. The wallet exists in the form of a small USB type device and is easy to carry around. This wallet falls under the category deterministic wallets.

ProsCons
Easy to useNot an open-source hardware
Easy to carry aroundNavigation may be a little tedious for users
Supports Multiple CryptocurrenciesLack of password manager

Trezor

When it comes to Bitcoin wallets, Trezor is one of the top names in the crypto market. Trezor wallet offers the highest level of security against the malware attacks and securing the private keys. It is one of the most used cryptocurrency wallets. Major features of Trezor include security and privacy. One of the drawbacks of Trezor wallet is being a bit more costly as compared to other wallets.

Security of Cryptocurrency Wallets

When it comes to the security of the crypto wallets, it is quite a subjective term. The security of a wallet depends on certain factors like the working of a wallet and the type of wallet etc. But the important thing to note is that it doesn’t matter how strong the wallet security is in case you end up losing your private keys. Losing private keys might end up losing everything you have in the wallet.

Online wallets offer the highest level of accessibility and security, but these wallets are hosted by third parties who could use the user data. If a wallet is developed by a reputable business or team, the trust factor might increase.

Offline wallets are secure as they could be unplugged when not in use and vice versa.

How to Keep Cryptocurrency Wallets Secure

  • It is important to update your wallet as soon as any update arrives, most updates have security patches that are needed to be applied.
  • Make sure that your record has proper backup at a safe place.
  • Keep private keys safe and secret
  • Even if you have to bear some extra cost, it is recommended to buy wallets that have a good reputation in the market
  • Use two-step verifications and other security layers offered by the wallet
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