Wallets are digital bank accounts where you keep the private keys that provide access to your bitcoin addresses. Wallets store the information that you have to provide when you want to use your bitcoins, making bitcoin exchange easier.
Whichever type of wallets you use, be reasonable. Take care of your private keys. If you leave a private key, you will lose the digital currency on your account. If someone else gets access to a private key, they can use your funds on the account. It would be a good idea to back up the entire wallet.
There are five different wallet types.
There exist a range of desktop wallets, they come with different features, they have different security levels. The most renowned desktop wallets are Bitcoin Core, MultiBit and Hive. Some desktop wallets boast extras. Armory offers a high level of security. DarkWallet is for those who want to remain anonymous.
Mobile wallets are available from everywhere, you can use them to pay with bitcoin when you are travelling or you are buying products at a brick-and-mortar store. You can add a mobile wallet to your mobile device as an app. It would be complicated – nearly impossible – to download the ever-growing blockchain to your mobile device, so mobile wallet users use simplified payment verification. It means that they only download a small part of the blockchain. Bitcoin wallet, Mycelium, Xapo and Blockchain are mobile wallets for Android. Aegis Bitcoin Wallet runs on Android smartwatches.
Online wallets provide instant access to your bitcoins, wherever you are, whatever device you use. On the other hand, you have to set them up the right way, otherwise they will provide the company that runs the website with your private keys.
Exmo.Com, an Internet exchange, is also an online wallet. If you live in the United States or Europe, you can use this site. Circle is available all over the world. Blockchain also offers an online wallet. Xapo is easy to use, however, it is a very secure alternative.
Hardware wallets have already hit the market, but they are still rare. Such devices can digitally store private keys, and you can use them when you want to pay with bitcoins.
Trezor hardware wallets can store a large amount of bitcoins, you do not have to involve a third party for storage. You can do offline transactions via Trezor, and it is very safe. You can order Trezor from Amazon or right from the producer.A Ledger wallet is available at the producer and at Overstock.
Paper wallets are useful, convenient, safe and inexpensive. They are easy to use. Many websites deal with paper bitcoin wallets. They provide a bitcoin address for you, creating an image with two QR codes, a public key and a private key. This alternative is secure, because no system holds your keys digitally, so no hacker can get access to them.