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Summary
- A Bitcoin wallet is an electronic wallet that can be accessed through a private key.
- There are many forms of Bitcoin wallets that can cater to different needs of security, accessibility etc.
- Mobile, web, desktop, hardware and paper are some of the types of Bitcoin wallets available.
A Bitcoin wallet is a digital wallet where Bitcoins and other cryptocurrency like XRP can be stored. Any individual with a balance in a Bitcoin wallet possesses a private key, which is like a password to that person’s crypto account and is needed for outbound transactions.
The private key ensures that only the owner and anyone he gives the code can open the concerned person's Bitcoin wallet.
There are several Bitcoin wallets to choose from, and the best one can be determined by how an individual wants to access Bitcoin and how essential security is for that person. These wallets are available in a variety of styles and sizes.
Source: Copyright © 2021 Kalkine Media
Here are the 5 types of Bitcoin wallets and some of the popular wallets available for New Zealanders.
- Mobile Wallets
Mobile wallets operate on a smartphone or tablet and are primarily used to make quick and easy payments while on the go. However, they are also the least secure as there is a risk of the crypto wallet being hacked, but the money might be taken if the gadget is stolen.
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Blockchain wallet and Coinomi are 2 popular Bitcoin mobile wallets with a strong emphasis on security.
- Desktop Wallets
These wallets run on a PC or laptop. They are an excellent initial wallet for crypto novices in New Zealand since they provide a safe and simple environment for delving deeper into more secure wallet types.
Exodus is one of the highly popular wallets for first-time Bitcoin and other crypto users. Electrum and Metamask are other wallets that can be downloaded on the computer to store coins on the hard drive.
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- Web wallets
They are web-based online wallets that store coins through an online third party. These web-based wallets are usually linked to cryptocurrency exchanges, allowing to trade and store cryptocurrency in one location. Blockchain.info and Coinbase are some of the convenient and easy to use web wallets.
Source: Copyright © 2021 Kalkine Media
- Hardware Wallets
These are physical devices kept offline and are used to hold files containing the private key. Two popular Bitcoin hardware wallets are Ledger and Trezor. Both brands have a similar principle, allow for the storage of a large number of coins, and are reasonably priced.
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Ledger Nano S is a hardware wallet with an OLED display for added security and compatibility for a broad range of cryptos.
TREZOR is a popular hardware wallet with a long list of security characteristics. It was the first hardware wallet for Bitcoin.
- Paper Wallets
In this type of wallet, the person can print the key, a QR code typically on a paper document, making it impossible for a hacker to steal the password online. However, measures must be taken to protect that paper as it contains private and valuable information.
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An individual does not need to stick to only 1 type of wallet for his entire life; he can have many Bitcoin wallets. Moreover, the individual can combine the best features, such as storing a small amount in a mobile wallet for transactions while keeping the majority of the assets in a more secure hardware wallet.
