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Bitcoin is a valuable investment, so if you are purchasing bitcoins, you need to have proper knowledge about how to store them safely and protect them from the online threats of hacking, phishing, etc. If you want to choose the right wallet for storing bitcoins, you need to know about all the variety available. If you want to learn about bitcoin trading, you can visit this 1K Daily Profit. Some of the varying kinds of bitcoin wallets in the market are mentioned below.
Hot wallet and cold wallets
When it comes to bitcoin wallets, there are mainly two categories in which all the wallets fall. There are two kinds of wallets; hot wallets as well as cold wallets. A hot wallet is quite popular nowadays as it is online and allows users to make online transactions with better accessibility and ease. You can store these wallets on your computer or mobile phone, but they must have a stable internet connection. Cold wallets are wallets that are used to access bitcoins without using the internet. These wallets may not be much advanced, but there is no better option than a cold bitcoin wallet when it comes to security. There are numerous cold and hot bitcoin wallets in the market, and some of them are mentioned in the following paragraphs.
Which are the top hot wallets?
Mobile wallets
When it comes to hot bitcoin wallets, one of the most convenient options is the mobile wallet. It is a digital bitcoin wallet installed on any mobile phone and allows users to make easy bitcoin transactions through their mobile phones. These wallets are easy to use and make it a lot convenient to pay bills, make online purchases, and transfers with bitcoins. But you must keep one thing in mind that these wallets are highly prone to cyberattacks, so you must ensure that your mobile phone is equipped with a good antivirus. Moreover, you can also use some safety features such as two-factor authentication and multisig to enhance security.
Web wallets
Another common hot wallet is the web wallet. These wallets are websites where you can store bitcoins and access them by visiting the website from any browser. The best part about using these wallets is that you can access them anywhere through any browser. Third parties manage web wallet services, so if you are using them, your private keys will also be stored by them, which makes it a bit risky. So, you need to be a bit careful while using web bitcoin wallets and do proper research before choosing. One of the simplest ways to choose the safest web bitcoin wallet is by checking its URL. If the URL has HTTPS, it means that it has a secure protocol, whereas if it has HTTP, it means that the connection is not secure.
Which are some of the most popular cold bitcoin wallets?
Paper wallet
It is irrefutable that nowadays, hot bitcoin wallets are more in trend as they are more accessible and convenient to use, but when it comes to safety, cold wallets are still a lot better. If we talk about types of cold bitcoin wallets, the paper wallet is the first one that we need to discuss. It is one of the first-ever bitcoin wallets introduced a few years backs; advanced digital wallets were not available, so most users preferred paper wallets. It is a piece of paper that stores the private keys in the form of a QR code which is imprinted on paper. If we talk about ease of use, it is not the right option as one needs to be immensely careful while using a paper wallet as if it gets damaged, you won’t be able to use it anymore.
Hardware wallet
A hardware wallet is one of the most widely-used bitcoin wallets, and at the same time, it is also the safest one. It is a type of USB device in which all the private keys are stored, and if the user needs to access bitcoins or make any transactions, it can simply be connected to any computer system. If you are worried about the online risks while using bitcoins, a hardware wallet is a right option for you.
