I – What is a Bitcoin Wallet?
A bitcoin wallet is another advanced software program where a person can receive, send, and store the bitcoins. Accordingly, in the world of digital currency, bitcoin wallets serve as an equivalent to a bank account where certain transactions are made.
Apart from receiving, sending, and storing digital coins, this wallet is also another interface where you can connect to other bitcoin owners around the world. Having known that cryptocurrency is the newest trend, it is good to know that bitcoin wallets now have secret codes which enhance the security of any transaction made by the owner.
In other words, bitcoin wallet is simply an application, and or another platform, which stores your private codes for you, that gives you access to your stored digital coins.
Setting up a bitcoin wallet is simply easy and hassle-free. It would take you some few seconds in setting up your email address or mobile number, together with your password. After setting it up successfully, you will send and receive any transactions without any hassle at all.
II – Types of Bitcoin Wallets and Its Functions
When thinking of owning your own bitcoin wallet, you have to know that this platform comes in two forms. Bitcoin wallets can be both hardware and hot wallets, and both serve almost the same function.
1. Hardware Wallets
This kind of bitcoin wallet is a physical electronic device which is designed especially for storing crypto coins. This device has to be connected to any device like a computer or mobile phone before any transactions will be made. As of this year, there are three popular hardware bitcoin wallets that could be of good choice; these are the Ledger Nano S, TREZOR, and KeepKey.
When looking for enhanced security and convenience when making bitcoin transaction, owning a hardware wallet is best for you. This allows you to keep your private codes secure from any internet-connected related transactions. Hence, this will keep your security codes safe from hackers.
Hardware wallet also has its own private key offline, thus, you can ensure that there is no way for fraudulent transactions and hackers to reach your digital coins. When worried about this device being stolen or lost, you need not worry about, as long as you have created a secret backup code, you can always retrieve and keep your coins safe.
2. Hot Wallets
Opposite to the hardware wallet is the so-called hot wallets. This is another storage of digital coins that will run on internet-connected devices like phone, computers, and tablets. On the contrary, it has no physical hardware component, however, hot wallets are still considered as the easiest way to store small to a big amount of crypto coins.
It also has a private code and it will be generated only when devices are connected online. Despite the downside concerning its security, hot wallets are still considered convenient means in receiving and sending payments. Somehow, this also allows multiple access across other types of devices.
III – Which Bitcoin Wallet is Best for You?
When it comes to keeping your bitcoins safe and secure, you have to choose the bitcoin wallet which has the safest means of storing your crypto asset. In such a case, a hardware wallet is believed to be a lot safer than the other ones. Each wallet has its pros and cons; however, you have to select the kind of bitcoin wallet that works best for your need.
A software or hot wallet may not have that most secured secret code, but on the other hand, this wallet allows you to send and receive bitcoins for free and transactions can simply run smoothly.
Some wallets were designed with tightened security; while others were purposely made on privacy. Hence, it is your specific need being the crypto-coin owner that will determine the best kind of bitcoin wallet for your use.
IV – Top Bitcoin Wallets of 2019
Here are some of the top and notable bitcoin wallets to consider this year. Check this out.
This is another bitcoin wallet where you can sell, buy, and store your crypto assets. Accordingly, this earns the first spot among the ranking in terms of the top wallets for consumers. This wallet allows you to connect with any US dollar bank accounts and transferring in and out of this wallet is very easy. In addition, Coinbase also supports other variety of coins aside from bitcoin.
Further, Coinbase wallet is also known for its ease of use, but on the other hand, some worried regarding its security. Nonetheless, this wallet still has very firm security and has been constantly improving its interface.
It is another bitcoin wallet in the rank that is known for its heightened security. It is a physical device where you can store your bitcoins safely. Accordingly, this hardware wallet works when plugin with computers or mobile phones and will work with multiple kinds of crypto coins.
Another useful function of Trezor is its ability to have a two-factor authentication which further protects your coins from hackers and fraud transactions.
One of its edges is the fact that you can simply safely store your coins in your own computer. However, you just have to keep your computer safe from crashes as it may also be caused for the loss of your crypto coins.
Having known that blockchain is the technology which allows the existence of bitcoin today, this Blockchain.info is yet another bitcoin wallet that is almost similar to that of Coinbase. It is online coin storage but it won’t allow you to buy and sell your coins all at the same time.
This means, your coin storage is different from that of the bitcoin marketplace. Nonetheless, the separation of storage and marketplace adds to the level of security of this bitcoin wallet.
Having known to be a software wallet like Electrum, this Exodus is more beautiful and easier to use. This online coin storage allows you to create a portfolio for your crypto assets.
With the use of the ShapeShift application, you are able to exchange your coins in no time. This also has a private key feature and other security tools that will keep your coins safe at all times.
V – Summary
While bitcoin is making its trend around the world, it is good to know that bitcoin wallets are also made available today in safe-keeping your crypto assets. With all these above-mentioned bitcoin wallets, there is only one thing in common, these platforms help you send, buy, and keep digital coins easier, smoother, and hassle-free.
These wallets may come in many forms, but you have to consider the kind of bitcoin storage that will meet your need being a crypto asset owner.