Types of Crypto Wallets
Bitcoin wallets both store and manage cryptocurrency. A ‘hot wallet’ is one that installs directly onto electronic devices. A ‘hot wallet’ offers its users complete control regarding the security of their Bitcoins. Be aware though, that the transaction of cryptocurrency happens over the Internet – clearly a less secure method than others.
Another version of a Bitcoin wallet is the ‘hardware wallet.’ These wallets provide higher security levels as its stores the cryptocurrency coins offline, out of the reach of malicious hackers.
Paper documents (aka cold storage) are simply written documentation that contains complete the information a user will need to produce the private keys needed. It can be a QR code or even a piece of paper that is scanned and entered into a software wallet. There are, however, even more types to explore.
Mycelium Bitcoin Wallet
Mycelium is considered one of the finest Bitcoin wallets available in the marketplace. Mycelium sends and receives Bitcoins with the use of a mobile device. It permits the application of cold storage and easily integrates with hardware Bitcoin wallets like Trezor or KeepKey. Mycelium Bitcoin Wallets also provides unique security features.
One of the more recent entrances into the Bitcoin wallet marketplace is the company – Samourai Wallet. Samourai Wallet has reached for lofty objectives as it asserts itself to be the single most private and anonymous cryptocurrency wallets, because of its military-grade encryption features. At present, this wallet has been alpha-released for Android devices.
Breadwallet is a great Bitcoin wallet especially for newbies and novices. It is an easy to use wallet, which is also open-sourced. The fundamental design of the application is simple and seemingly ultra intuitive. This makes BreadWallet a perfect choice for beginners.
If your primary objective is to increase your levels of privacy, check out an Airbitz wallet. What makes Airbitz unique is that it operates as a decentralized wallet. This means that it your data can never be accessed by a third party. Airbitz is a great choice if your goal is anonymity and serious security.
Copay is a multi-signature open-source wallet. It is adept at alleviating private key confusion, which is often problematic for some users. This multi-signature technology allows Bitcoin wallets to be safely controlled by several users.
Coinbase has reached the upper tiers of global popularity. Coinbase allows consumers and merchants to transact business using more than one cryptocurrency, like Bitcoin, Litecoin & Ethereum. Although Coinbase is an online-service, they keep 95% of users funds in cold storage (most secure). The other 5% is insured in the event of a loss, just like the funds in your normal bank account.
GreenBits is a Bitcoin wallet that offers something for everyone. It typically meets the requirements of those who want robust privacy and security features. And, it has a very short ‘learning-curve’ and allows for multi-signature applications.
Bitcoin Wallet was the first wallet designed as the playing field for Bitcoin pioneers. It is simple, but it works. As an added bonus, Bitcoin Wallet allows for quick-pay options, like scanning QR Codes.
Entering 2018, it would be hard to argue that Bitcoin is simply a passing financial fancy. No one can predict just how this financial instrument will evolve, or the magnitude of the impact it will have on the current banking system. Selecting a Bitcoin wallet is a personal decision. When you begin to actively research the Bitcoin wallet options, take a moment to prioritize your needs, as this will help refine your search for a Bitcoin wallet. Is privacy more important than security? Would you give up your anonymity for a free digital wallet? The good news is the Bitcoin wallet marketplace is in barely out of its infancy and in a no time flat, there will a digital wallet to meet everyone’s needs.