Understanding Bitcoin Wallet, Its Types & Security

Since the cryptocurrencies have attained infinite popularity. Crypto wallets are usually considered safe heavens for virtual currencies across the globe. It is believed that these kinds of wallets work like a bank account where we safely deposit our money and many more precious things. Similarly, these wallets are also used to send and receive these virtual currencies globally. According to our surveys, these cryptocurrencies are accepted in hundreds of outlets across the board. Bitcoin is also one of the most famous cryptocurrencies used for trading, buying goods, and as a gift to our loved ones. A Bitcoin wallet is a software program in which Bitcoins are stored. Technically, Bitcoins are not stored anywhere. For every individual who has a balance in a Bitcoin wallet, there is a private key (secret number) corresponding to the Bitcoin address of that wallet. Understanding bitcoin wallet, secure from cyber attacks, protect from hackers backup entire wallet encrypt multiple time safe secure cold storage offline paper wallet. Bitcoin wallets facilitate the sending and receiving of Bitcoins and give ownership of the Bitcoin balance to the user. The Bitcoin wallet comes in many forms. The four main types are desktop, mobile, web, and hardware.

understanding bitcoin wallet types and security

Understanding Bitcoin Wallet

The wallet works like a bank account where we deposit, send, and receive cryptocurrencies globally. The bitcoin wallet contains a collection of key pairs, each of the pairs consisting of both private and public keys. A bitcoin wallet is not any physical wallet, but it is a kind of software program in which Bitcoins are kept. In fact, Bitcoins and other cryptocurrencies are not stored anywhere rather these wallets got a private key associated with that very Bitcoin address.

Kinds of Wallet:

Bitcoins wallets are available in different forms. The commonly used wallets are Hot wallet and Cold wallet. These two wallets are further categorized into four types.

  • Hardware wallet.
  • Desktop wallet.
  • Web wallet.
  • Mobile wallet.

Let us explain all the above-mentioned wallets step by step.
Web wallet.
One of the famous categories of hot wallet is commonly known as the Web wallet. Web wallets are always required to get connected to the internet. Therefore it can be easily approached by different web browsers e.g IE, Firefox, and google chrome. Confidential or private keys are normally held online in such kinds of wallets. Moreover, this type of wallets can be targeted by hackers. However, we always advise our customers to avoid using these hosted wallets in order to have maximum control of their funds.
Hardware Wallets
Hardware wallets are mostly known as one of the safe wallets for your cryptocurrencies, particularly for Bitcoins. It is a kind of tangible hardware that is connected through the USB port of your computer or laptop. This carefully designed hardware device is fully capable to manage your private and public keys without the fear of theft and hacked. Their prices are usually between $100-$200.s
Desktop Wallets:
One of the widely used wallets is usually known as a desktop wallet particularly for Bitcoins and other cryptocurrencies. It is also considered another safest and secure wallet in the horizons of cryptocurrencies. It is provided in the shape of different installable windows operating systems e.g Mac, windows, and Linux. The desktop wallet works as an address for its user to receive and send their cryptocurrencies. Desktop wallets for Bitcoins and cryptocurrencies are installable software packs that are available for most of the desktop operating systems such as Mac, Windows, Linux.
Mobile wallet:
The functions of a mobile wallet are almost similar to a desktop wallet in the dictionary of cryptos. Mobile wallet offers the facility of payments to its holder in real stores e.g Near field communication scanning of Qr code, touch to pay, Mycelium Bitcoin Wallet, Hive Andriod. Bitcoin wallets are either iOS or Android system compatible. High risk involves using the above-mentioned platforms therefore we advised our clients to be very much careful while selecting these available options.
Open Source Paper Wallet Generator:
No need to worry while generating the wallet for your Bitcoins because now it has become 100% secure and safe. All you need to do is to download the source code and generate a wallet while you are offline. The amazing facility is that you can now easily generate a kind of private paper wallet and transfer a small number of your Bitcoin holdings while using your private key to testify the level of control on your crypto holdings. Paper wallet is offline way to secure bitcoin more and more with highest standard of privacy to protect your digital assets online from cyber attacks etc.