There are two critical steps to finding a Bitcoin wallet that is right for you. First, you need to decide what sort of crypto wallet you need, and then you consider specific wallets to find the best one for you.
Bitcoin wallets differ by security, convenience, coin support, level of privacy and anonymity, user interface, customer support, fees, built-in services, and other variables.
The most common distinction between Bitcoin wallets is whether they are cold or hot. Cold wallets refer to offline storage, while hot wallets are connected to the internet most of the time.
The online wallets are more suitable for daily use but aren’t secure, while offline wallets are less convenient for frequent use yet are more secure.
However, the distinction between the Bitcoin wallets doesn’t end there.
Five main types of Bitcoin wallets
There are five sorts of Bitcoin wallets that you can choose from: hardware, desktop, mobile, web, and paper wallets.
Hardware wallets. These are Bitcoin wallets that store your private keys on devices like USB sticks. Hardware wallets are mostly cold and very secure, but they also cost a bit of money, so it’s recommended to get one only if you plan to store over $1000 value in crypto assets for a long time.
Desktop wallets. Desktop wallets are installed on personal computers or laptops. If the device is constantly connected to the internet, they classify as hot. Generally, they are regarded as secure, yet they are vulnerable to various malware and computer viruses.
Mobile wallets. Mobile wallets, like desktop ones, are software wallets. Unlike desktop Bitcoin wallets though, they are significantly smaller and simpler. They serve as a convenient on-the-go wallet for daily usage.
Web wallets. These are online wallets that are considered less secure than other types of wallets, yet they can be highly convenient. Web wallets include browser plugins, exchange wallets, and others. When it comes to the security of these wallets, it is not recommended to keep substantial amounts of Bitcoin there.
We recommend using non-custodial, open-source, and private web wallets like BitAmp, which is extremely quick to set up and easy to use.
Paper wallet These are online wallets that are considered less secure than other types of wallets, yet they can be highly convenient. Web wallets include browser plugins, exchange wallets, and others. When it comes to the security of thesewallets, it is not recommended to keep substantial amounts of Bitcoin there.an grant you a relatively high level of security.
The main risk that comes with Bitcoin paper wallet is that it may not be durable enough, so you should consider its storage conditions before making one.