What is a BitCoin Wallet and Types Of Bitcoin Wallet
Bitcoin has been grabbing the headlines of all financial news media for the past few weeks. It is largely thanks to the fact that the value of Bitcoin has grown nearly ten times since the start of the year. And the most amazing part about this is, it is only predicted to grow further.
So, if you are looking to invest in Bitcoins, this is the perfect moment to do so. Bitcoins have a high value these days, which is why it is essential to save them in a safe and secure place. And that is where Bitcoin wallets come in.
What is a Bitcoin Wallet?
Bitcoin wallets are like banks for Bitcoins, but with a difference. Unlike regular money, Bitcoins cannot be stored anywhere. So, what exactly does a Bitcoin wallet store? Every Bitcoin has an address, and all these addresses have keys to access them. Without these keys, you lose access to your Bitcoins, hence storing them in a secure location is of high priority. A Bitcoin wallet stores these keys in a safe and a secure place.
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Types Of BitCoin Wallets
There are many different types of Bitcoin wallets, here are some of them :
A desktop wallet is in the form of software that can be installed on your desktop computer or laptop. It can only be accessed from the computer it was installed on, thus making similar to cold storage. Storing your Bitcoins in a desktop that is not connected to the internet prevents any threat of hacks.
These wallets are online services that store your keys on their encrypted servers. Only you can access them with the help of a password or passphrase. Online wallets can be accessed from anywhere at anytime.
Hardware wallets are small devices that are not connected to the internet or any other network, These devices are portable and are used only to store your Bitcoins. Trezor is a famous example of this kind of wallet.
Wallets that come in the form of an application that can be installed on your phone is called a mobile wallet. These wallets can be both connected to the internet or not connected to it.
Physical wallets are nothing but address keys printed on a piece of paper. This paper can then be stored in a secure location to prevent loss of theft. Websites offer services through which users can print the address keys on paper.