Wallets for cryptocurrencies

Storing Bitcoin and cryptocurrencies is very different from traditional currencies. Unlike other traditional currencies, Bitcoin is a digital currency, so we need a completely different approach to transfer and to store this currency.

Because Bitcoin does not have physical form and shape, it cannot be saved anywhere, but its Private Key can only be stored in a secure place that allows access to the fund and signing transactions.

Public Key Sample (Bitcoin Address):
1DJLKU6GM7vrDk98JttktFf58ktApGYwT7

Private Key Sample:
L4izGfiCKU6GM7vrDkg7xog1RMox23K98JttktFf58kte6nLzq4x

Note that the balance of the wallet shown above is empty. You should never give your Private Key to a person or website.

The combination of Public Key and Private Key makes a Bitcoin transactions. There are several types of Bitcoin wallets and wallets for other cryptocurrencies, each with its own needs and advantages and disadvantages.

Different types of wallets

Choosing a wallet to use is one of the first things you need to work with cryptocurrencies. We will continue to introduce a variety of wallets. You should select the appropriate one according to the requirements, expectations and features of each wallet.

1. Paper wallets

What is Bitcoin paper wallet?

A paper wallet is just a sheet of paper that has your Public Key address (Bitcoin address) and Private Key.

Public and Private Keys are printed on a paper which usually includes a QR-code so that it can be scanned quickly through scanners and transfer the fund to a software wallet and perform a transaction.

To make a paper wallet you can use the following two sites:
https://www.bitaddress.org
https://Bitcoinpaperwallet.com

Read this complete guide for making a paper wallet.

The main advantage of paper wallets is the fact that the Keys are not stored in any digital or online storages. In this way, the risk of hacking and stealing Private Keys through malware, Key-loggers, and any theft through digital space is almost zero.

However, you need to take security measures to make paper wallets, all of which are listed in the Bitcoin Paper Guide.

Be careful. You are printing a Bitcoin Private Key on a paper and anyone who has this paper can access to your funds. If you lose it, you lose your money, all of your Bitcoins or other cryptocurrencies you stored will be lost and there is no way to retrieve it.

2. Mobile wallets

For people who need to perform Bitcoin or other cryptocurrency transactions on a daily basis, mobile wallet is an essential tool.

This type of wallet is actually an app installed on your Android phone or iOS device and holds your Private Key in them. These apps allow Bitcoin or other currencies to be sent and usually have an easy-to-use interface.

Despite being easy to use, mobile wallets are always in danger of hacking. Also, if your mobile phone is damaged or otherwise out of your hands or stolen for any reason, someone else can access your Bitcoins.

3. Online wallets and web wallets

Web Wallet keeps your Private Key on their own servers. The server is always online and is maintained and controlled by a company or individuals.

Various web wallet Services have a variety of features, and some also connect to mobile phones or desktops.

Like mobile wallets, web and online wallets allow users to access their crypto and transactions through any device with an Internet connection.

But if it is not properly implemented, the company that runs the site may access your Private Key and have the ability to control the wallet’s funds. In addition, the operation of some online wallets is based on some exchanges, and there is a risk that the exchange will close or be fraudsters.

4- Desktop wallet

Desktop wallets can be downloaded and installed on a PC or laptop. These software will keep your Private Key on the hard drive of your computer.

These wallets are more secure than most online and mobile wallets. because your Private Key is kept on your computer and this key is not shared with any other person or server.

Although, these wallets are connected to the Internet to work and therefore it is possibility for them to be hacked, they are a desirable option for those who intend to transfer low Bitcoin amounts through their computer.

There are various types of desktop wallets available, some of them focused on security, some on anonymity and more.

5- Hardware wallets

A hardware wallet is a special kind of cryptocurrency wallet that holds the Private Key in a hardware device.

These wallets are the safest and best way to keep Bitcoins or other cryptocurrencies and there are no concerns about buying these wallets from a safe and original place. Unlike paper wallets that need to be transferred to a software wallet for transferring funds, hardware wallets can be safely used for transactions.

In addition, these wallets are immune to computer viruses, and funds cannot be stolen by stealing Private Keys. Even some hardware wallets have a screen, so they have more security. Because they can be used to display and confirm transactions.

For example, the display can be used to generate the recovery phrase and verify the amount and payment address. So if you buy it from a valid vendor, your cryptocurrencies will be safe and secure.

The most important hardware wallets are:

  • Colloquial (like a bank card)
  • Ledger Nano S
  • TREZOR
  • KeepKey

You can find out about their pricing and buying methods by searching their names on Google.