A Bitcoin wallet is a digital wallet equivalent of the physical wallet you use to keep fiat currency. The Bitcoin wallet allows one to send or receive Bitcoin, pay for purchases or save Bitcoin. The digital wallet also allows one to own Bitcoin. Technically, there is no central storage for Bitcoin. Each Bitcoin address is assigned a private key. This private keywhat is stored in a Bitcoin wallet. There are four main types of digital wallets.
While we at Wood Wallets strongly encouraged our product in the past, we also realize consumers need convenient mobile wallets too, as well as online quick solutions for sending/buying crypto. Hopefully these are great alternatives to ours.
The hot is the type of digital wallet that you install on your computer or mobile device.
Desktop wallets come as software that you install on your computer. The desktop software allows you full control over your wallet. The desktop wallet stores private keys on your computer’s hard drive. This way you can access your Bitcoin using the computer in which you installed the wallet. In case of file corruption (by a computer virus or any other cause), you may ultimately lose all the coins you stored in the wallet. For this reason, it is essential that you make backups of your wallet. Always you secure passwords to keep your wallet and backup from access by malicious people. You can also lose your wallet and coins when you accidentally delete your it or format your computer.
As the name suggests, mobile wallets are apps that you install on mobile gadgets such as smartphones and tablets. Unlike their desktop counterparts, mobile wallets allow you to move with your wallet wherever you go. The mobile wallet enables you to transact Bitcoin from anywhere. These wallets allow you to make payments in stores using Quick Response (QR) code. The wallets support different platforms including Android, Windows, and iOS. Examples include Mycelium Bitcoin and Hive android.
The hardware wallet comes in the form of a device specifically developed to store Bitcoin. Hardware wallets aredifficult to compromise when compared to other kinds of Bitcoin wallets. Hardware wallets offer Offline storage, which keeps your cryptocurrency from the reach of hackers. Hardware wallets allow users to have full control of their Bitcoin.
Also called web wallets or online wallet. Online wallets allow you to transact Bitcoin from any location using a computer or mobile browser. Online wallets require a username and secure password to access your coins. Web wallets store private keys online, which means you need to stay careful when using them. The upside to this is that you do not need to install any software on your computer and wait for lengthy synchronizing processes. Some of the popular web wallets include Blockchain and Coinbase web wallets.
Some of the popular Bitcoin Wallets include
Electrum is a software wallet that offers free storage for Bitcoin. Electrum is the most popular and highly respected software among Bitcoin users. Electrum was developed in 2011 and supports different platforms including Windows, OSX, and Linux. On the mobile platform, electrum is compatible with Android gadgets but not iPhone.
The popularity of electrum stems mainly from its security and reliability. It has two-factor authentication and boasts support for hardware wallets as well as cold storage. Other features include a friendly user interface and it is easy to use. It is an excellent choice for beginners. With electrum, users have total control of private keys.
Exodus is a free desktop wallet that supports several kinds of cryptocurrencies aside from Bitcoin. Exodus is available for Windows, Linux, and Mac. The desktop wallet has a beautiful and user-friendly interface. It allows users full control of their private keys and facilitates secure backups.
Exodus has a smooth dashboard design with minimal technical jargon. The dashboard allows you to monitor your portfolio of cryptocurrency dealings.
Exodus does not offer two-factor authentication to secure your wallet. Many view this as a downfall because the 2FA adds another level of security to your wallet.
Trezor is a hardware wallet for cryptocurrencies. It is small, portable and straightforward to use. It has an inbuilt display that allows you to stay up to date with the happenings inside you hardware wallet. The screen also facilitates verification of transactions. The wallet has buttons to use for confirmation. Once connected, you can access your device using a pin code.
Cold storage offers security against malware and cybersecurity risk. Another essential feature of Trezor is disaster recovery in case of loss or theft. Trezor also facilitates backups. It is user-friendly to novice users as well as experts. Trezor is also compatible with other wallets. The wallet boasts powerful cryptography.
The downside to the Trezor wallet is it is not cheap. Trezor wallet costs about $99.
Mycelium is a popular Bitcoin wallet available only for mobile devices. It is available for Android and iOS. Mycelium boasts a high rating compared to other Android Bitcoin wallets. You can trust this wallet. Mycelium is open source meaning you can view the code. However, you cannot modify or redistribute the mycelium code.
Mycelium packs several innovative privacy and security features. It is among the safest Bitcoin wallets available in the cryptocurrency market. Mycelium offers a high level of anonymity in cryptocurrency dealings. Mycelium is compatible with Trezor and ledger hardware wallets. Mycelium supports connection via tor if you need extra privacy.
The downside to Mycelium is the security of your phone. If someone steals your mobile phone and accesses it, the person can easily transfer your Bitcoin into his or her wallet. Cybercriminals can hack smartphones and steal your coins. Nevertheless, the security features of mycelium make it difficult to hack.
Coinbase is a cloud wallet with a simple design with several suitable features that make it ideal for novice users. Coinbase allows users to send and receive Bitcoin through email. You can also buy and sell coins directly from Coinbase. Coinbase enable the user to store their coins. However, it is risky to save your Bitcoin on the same site you buy the currency. The Coinbase site has a high level of security to protect its users against coin theft by hackers.
Coinbase accepts several fiat currencies and supports trading of other cryptocurrencies. It does not limit you to exchanging coins to dollars.
The limitation of Coinbase is that only open to users in 32 countries and limits selling of cryptocurrency to just a few of the countries.
Armory walled boasts immense favor among expert Bitcoin users. Armory has been around for a very long time. It has been tested for many years and guarantees reliability compared to newer options.
Armory boasts several safety and secrecy features not available in other wallets. Armory offers a cold-storage option for reduced vulnerability and improved security. It also has numerous encryption options for improved security and anonymity.
The downside to the armory wallet is that it is old and a bit slow. However, its functionality is guaranteed.