A Bitcoin wallet is the first step to using Bitcoin.
What is a Bitcoin Wallet? Without a crypto wallet, you can’t receive, store, or spend bitcoins.
You can think of a wallet as your personal interface to the Bitcoin network, similar to how your online bank account is an interface to the regular monetary system. Bitcoin wallets contain private keys; secret codes that allow you to spend your bitcoins. In reality, it’s not bitcoins that need to be stored and secured, but the private keys that give you access to them.
A Bitcoin wallet is simply an app, website, or device that manages Bitcoin private keys for you.
What is a Bitcoin wallet?
Types of Bitcoin Wallets
Let’s discuss the types two types of bitcoin wallets, Hardware Wallet, Hot Wallet and why you might want to use one kind over another.
What is a Bitcoin wallet ? A hardware wallet is a physical electronic device, built for the sole purpose of securing bitcoins.
The core innovation is that the hardware wallet must be connected to your computer, phone, or tablet before bitcoins may be spent. The most popular and best Bitcoin hardware wallets, Ledger Nano S, Trezor. Hardware wallets are a good choice if you’re serious about security and convenient, reliable Bitcoin storage.
Bitcoin hardware wallets keep private keys separate from vulnerable, internet-connected devices.
Your all-important private keys are maintained in a secure offline environment on the hardware wallet, fully protected even should the device be plugged into a malware-infected computer. As bitcoins are digital, cyber-criminals could, potentially, target your computer’s “software wallet” and steal them by accessing your private key. Generating and storing private keys offline using a hardware wallet ensures that hackers have no way to reach your bitcoins.
Hackers would have to steal the hardware wallet itself, but even then, it can be protected with a PIN code.
Don’t worry about your hardware wallet getting stolen, lost or damaged either, so long as you create a secret backup code, you can always retrieve your bitcoins.
Think of a hardware wallet like your own underground steel vault. If you own a significant amount of bitcoins, you should strongly consider getting one!
Why are hardware wallets good?
Easiest way to securely store bitcoins.
Easy to backup and secure.
Less margin for error, setup is easy even for less technical users.
Why are hardware wallets bad?
They’re not free!
The Most Popular Hardware Wallets
Ledger Nano S
EUR79.00 excl VAT approx ( $97.50usd ) Free Shipping!
$110.00 usd Free Shipping!
iOS iPhone & Android App Hot Wallets
What is a Bitcoin wallet? Hot wallets are Bitcoin wallets that run on internet connected devices like a computer, mobile phone, or tablet.
Private keys are secret codes. Because hot wallets generate your private keys on an internet connected device, these private keys can’t be considered 100% secure.
Think of a hot wallet like your wallet today: you use it to store some cash, but not your life savings. Hot wallets are great if you make frequent payments, but not a good choice for the secure storage of bitcoins.
Why are hot wallets good?
Easiest way to store small amounts of bitcoin
Convenient, spending and receiving payments is easy and fast
Some hot wallets allow access to funds across multiple devices
Why are hot wallets bad?
They are not safe for the secure storage of large amounts of bitcoins.
Which Wallet is Best for You?
A hardware wallet will keep your coins safe.
Otherwise, a software wallet will send and receive bitcoins just fine. Best of all, software wallets are free.
Each wallet has pros and cons, and different wallets are built to solve different problems.
Some wallets may be geared towards security, while some wallets may be more focused on privacy.
Your specific needs should determine which is the “best bitcoin wallet” for you.
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