A Guide To The Cryptocurrency Wallets

Bitcoin wallet program allows the users to store, monitor, receive and send Bitcoins balances. You simply need to install the software on your mobile or computer to manage your Bitcoins. The wallet works more or less like a bank account. The only difference is that the latter manages cash flow while the former helps the users to manage Bitcoins.

Types of Bitcoin Wallets-

1. Hot Wallets and Cold Wallets

Hot wallets boast online presence and are accessible through the internet. It is for this reason they are referred to as ‘hot’. On the other hand, Cold wallets are

disconnected from the web. Being more secure on technical grounds, they are preferably used for managing Bitcoins on a large scale.

2. Desktop Wallets

Desktop Wallets being the part of the hot wallets category store the private key of the users on their computer. Hence, it becomes important to ensure 100%

security of your computer in order to keep your Bitcoins safe. In terms of technical security, Desktop Wallets are vulnerable.

4. Online Web Wallets

These highly competent Bitcoin wallets facilitate the users with various Multi-Factor Authentication options including protection from external hackers. Even so,

Online Web Wallets are least preferred for storing huge amount of coins due to the risk factors involved in their use.

5. Hardware Wallets

Hardware Wallets involve the use of USB shaped, cold-storage devices that need to be plugged into the desktop to make a transaction. These wallets generate the

private keys on the device, hence are secured from the computer malware. Users need not deal with complex technical details in case of Hardware Wallets.

The Concluding Word

Bitcoin Wallets usually vary in terms of security, convenience, and technical details. It is advisable to measure your preference and then choose a Bitcoin Wallet

accordingly. Consider a number of Bitcoins to be stored, affordability, privacy level and technical complexities of the wallets when making the choice.