Monday, August 8, 2022
Monday, August 8, 2022
Home Bitcoin Bitcoin Wallets: Different Types & How to Choose the Best One

Bitcoin Wallets: Different Types & How to Choose the Best One

by James Musoba
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Bitcoin is a virtual currency that cannot be stored in a bank safe deposit box, thus, a different storage solution is needed. They are stored in special devices known as bitcoin wallets. The growing popularity of bitcoin made it necessary to organize the storage of digital assets, and several types of bitcoin wallets were launched on the market. They differ from each other in a set of functions that are not always clear to inexperienced users. However, using one or even some of them is crucial if you want to try your luck and skills in crypto.

What Is a Bitcoin Wallet

Since Bitcoin is a digital asset, it is stored in the digital space. The functions of storing cryptocurrency assets are provided by reputable exchanges and some quick exchange services. Also for these purposes, special programs have been created that holders of cryptocurrencies install on a stationary computer, laptop, mobile phone or a specialized removable device.

Bitcoin Wallet Selection Criteria

To choose the best bitcoin desktop wallet, you need to consider:

The type. The whole variety of cryptocurrency wallets comes down to two main types: hot and cold ones. Hot ones are online storage spaces are those where your coins are stored directly on the Internet. Such an option is pretty convenient for making fast transactions and storing small amounts.

A cold wallet type is a standalone device that connects to the Internet as needed. It is inconvenient for trading, but it provides the highest possible security for your assets. They are ideal for storing large amounts.

Operating system. Cryptocurrency wallets are used on both computers and mobile devices. Before purchasing one or another storage type, you need to decide on the type of device on which it will be launched and make sure it is compatible with the operating system. Only then, you can be sure that the chosen option is going to serve your needs properly.

Among the crypto wallets there are cross-platform, compatible with any software and adapted to one of the popular operating systems. If you are sure that you plan to use the same operating system long enough, it makes sense to choose an option that is compatible with it.

If you are planning to replace your mobile phone or computer, it is better to choose a cross-platform version compatible with different software.

User interface and accessibility. The user interface means the set of functions built into the wallet and the usability of the functionality. The set of functions is very different, for example, some have a built-in cryptocurrency exchange function.

That is, in one option you can not only store different coins, but also BTC to XMR exchange. The number of supported coins and conversion directions is usually very limited. It is better for beginners to choose simpler wallets, while advanced versions are more suitable for more experienced users. The surest way to pick the best wallet is to try different options and choose the one you like the most.

Safety. To protect cryptoassets from possible cyber risks, different degrees of protection are provided. In some wallet types, the ability to select the degree of protection is implemented:

  • Standard;
  • Two-factor identification;
  • Multi-signature wallet.

The Multi-Sig function implies that a transaction can only be completed after it has been confirmed by several users. This ensures that no intruder can use your bitcoin wallet without your knowledge and permission.

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