There are literally thousands of cryptocurrency wallet users today. Obviously, the most used ones are Bitcoin wallets because after all, Bitcoin is the most popular cryptocurrency on the market. In their essence, Bitcoin wallers represent software programs and apps that are able to store public and private keys as well as interface with different blockchains. As a result of that, people can check their current balance, their history, send and receive money and perform other activities. People need Bitcoin wallets to store their Bitcoins safely.
There are a few different kinds of Bitcoin wallet options available to ordinary users. They use different methods to store Bitcoins. Generally speaking, there are hardware, software and paper Bitcoin wallets. Software Bitcoin wallets include online, mobile and desktop wallets.
As you may have guessed, desktop Bitcoin wallets are downloaded directly on laptops and PCs where they are installed too. You can use them only from the computer where they are installed. They are known for their almost perfect security. But, keep in mind that in case a computer gets hacked or infected by malware or spyware, you may put your Bitcoins at risk.
Mobile wallets rely on apps downloaded and installed on smartphones and tablets. The good thing about them is that you can use them even in physical stores to buy things. They don’t require much memory and power.
On the other hand, online Bitcoin wallets are relying on cloud technology. You can use them from any device regardless of your location as long as you have access to the Internet. They are definitely a convenient option, but since they are managed by 3rd party operators, they are not as safe as some other wallet options.
Hardware Bitcoin wallets are different from the wallets we’ve highlighted before because they store Bitcoins on hardware devices. In most cases, we are talking about devices that look like USB flash drives. Hardware wallets are used for conducting transactions over the Internet, but the Bitcoins are stored offline. As a result of that, you have better security.
Finally, there are paper Bitcoin wallets too. This is one of the simplest forms of wallets that deliver an extraordinary level of security to users. They represent a hardcopy of the private and public keys. They are an excellent option for those who want to exchange Bitcoins in person via sites like localbitcoins.