A Beginner’s Guide to Bitcoin Digital Wallets
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A Beginner’s Guide to Bitcoin Digital Wallets

September 12, 2020      Cryptoknowmics

Do you want to be a part of the blockchain-based financial system? Getting involved in some bitcoin transactions is the best way to start. For that, you will need a bitcoin wallet that will help you to make bitcoin transactions with others.

A bitcoin wallet allows you to buy, store, and sell bitcoins. Moreover, you can also send and receive digital money, and you can also spend it when necessary. There are different types of wallets, such as online and offline wallets.

Even though I will explain everything about a bitcoin wallet, I will majorly focus on the bitcoin digital wallets in this article.

Bitcoin Wallet

As you are a beginner, you may not have used a bitcoin wallet before. So a bitcoin wallet stores bitcoins that means the private key. In simpler terms, the wallet keeps records of the transactions, and you can access the transactions with your code.

Bitcoin wallets are available in two major forms “online wallets” and “offline” wallets. Offline wallets are of two types, which are also known as cold wallets. They are as follows:

  • Paper Wallets
  • Hardware Wallets
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On the other hand, online wallets or digital wallets can be categorized into three types, such as:

  • Desktop Wallets
  • Mobile Wallets
  • Web Wallets

Although offline wallets are more secure than online wallets, most people use digital wallets due to its convenience. So let us know about different types of bitcoin digital wallets with some examples.

Desktop Wallets

Desktop wallets are relatively more secure than the other two types of bitcoin digital wallets, i.e., mobile wallets and web wallets. For using a desktop wallet, you need to download and install a desktop application. In these wallets, you store your private keys, but they are stored in your hard drive.

However, when you make transactions, the wallet is connected to the internet. So make sure you are using anti-virus software on your system to prevent your wallet from hackers.

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There are many desktop wallets available with different functionalities. Here are some major desktop wallets which are compatible with all the popular operating systems such as Windows, Mac, and Linux.

  • Exodus: It is one of the most simple, easy to use, and reliable desktop wallets.
  • Electrum: It is a popular desktop wallet that is very secure and offers robust features.

You can also connect your digital wallets with the bitcoin revolution, a crypto trading platform to trade bitcoin, and some major altcoins.

Mobile Wallet

If you are going to use bitcoin transactions on a regular basis, then a mobile wallet is best for you. It allows you to pay your bills while shopping, having meals at restaurants, and drinking at a bar. You can also use your mobile wallet to trade bitcoin by downloading a crypto trading app. Some crypto trading apps also offer a bitcoin wallet.

However, mobile wallets are more vulnerable to risks than a desktop wallet. Here are some popular mobile wallets that are compatible with iOS and Android.

  • Edge: Best for beginners. With a single sign-on, you can use this wallet forever. It provides two-factor authentication.
  • Blockchain Wallet: It is an open-source platform with many advanced features.
  • Atomic Wallet: It is very easy to use and supports multiple crypto coins.
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Web Wallets

Web wallets are the least secure digital wallets because your private key is stored online with a third-party server. But you can access these wallets both from a mobile device or a desktop. So when you are using web wallets, make sure you choose them properly. Here are some popular web wallets.

  • Coinbase: It offers an exchange solution with wallets.
  • Blockchain: One of the popular web wallets.

Conclusion

Hopefully, the above information has provided you with value to choose your bitcoin digital wallet. However, if you are planning for long-term investment purposes, you can opt for a hardware wallet as they are the most secure, but you have to purchase it. Please share your views on this.

#Bitcoin Digital Wallets
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