Bitcoin is a digitalized currency that has been in use for the past few years. No company, business, or person has control over it and it is operated by a web of computers.
You can send or receive bitcoin by making use of a secure digital wallet, which is an app that you can download. Bitcoin does not exist physically, so a key is required to access a unique address of your bitcoin, which works together with a wallet.
Bitcoin wallets come in several forms. The following are a few of them.
Web-Based Wallet
This bitcoin wallet is also called an e-wallet. It usually uses a server as the storage for your private key. The server is always online and it is operated by an independent party. With this, you can get a variety of features which include a desktop or mobile wallet. And since it’s online, you can have this replicating on all your devices.
With an e-wallet, you can transact any amount faster using any gadget that is internet-connected. The companies that are in control of these websites can easily get your private keys if you don’t protect them, thus fully controlling your funds. Furthermore, there are those e-wallets that work on exchanges, which can shut down without paying your funds.
Mobile
A mobile bitcoin wallet is a very essential app to have, especially to individuals trading goods on a daily basis. This is mainly because mobile devices like smartphones or tablets are portable and versatile. You will be required to install a bitcoin wallet app that will store all of your private keys, which enables you to send and receive money.
Mobile Bitcoin wallet offers a simplified ledger that is fast and simple to use as opposed to the web option, which is heavy. Its payment verification is very simplified and this has increased its popularity.
Desktop
This is the most secure form of bitcoin wallet. The user downloads and installs the bitcoin desktop wallet on their computer and stores the private keys on the hard drive. It does not need independent parties to operate as the owner has all the control.
Since a desktop wallet is still connected to the internet, its safety is still questionable. One can still be hacked when the app is online. Moreover, when one gets access to your desktop, they can manipulate your credentials or make transactions without your consent. Therefore, you are obliged to protect your wallet just like in the case of others.
Hardware Wallet
The uniqueness of this wallet is that users store their keys and passwords in a physical hardware device such as a flash drive. The hardware requires special software for it to be used. Fortunately, it is known to be immune to malware and viruses.
Just like desktop wallet, users must ensure that no one has access to their hardware to avoid manipulation of data. Most importantly, ensure that your hard drive does not get lost.
Conclusion
As you can see, there are many bitcoin wallets, and understanding each one of them is very important. The above forms of bitcoin wallets have been compiled to help you get the best insights. Choose one that is suitable for you and you will not regret it.
Interesting related article: “What is a Digital Currency?“