Bitcoin wallets differences explained
When someone enters the crypto industry, they face the first problem - What type of Bitcoin wallet to use? From
Is Bitcoin paper wallet safe?
If you want a proven, 100% secure anti-hacker protection, there’s only one way to get it – don’t use the computer at all. Bitcoin paper wallet is using just that – you keep your credentials on a piece of paper, which you can hide anywhere.
You can simply go on a website offering this kind of service, generate your very own key, and then print it on a piece of paper. Some designs are using scannable QR codes so you don't need to manually enter your key whenever you want to send money somewhere.
Once you hold that valuable piece of paper, just store it in a dry place, and... you're safe! No malware or spyware can see your key.
However, there is one point critical to security and it's the moment of creating a wallet. You need to make sure that your device is virus-free so nobody can get access to your key just after you generate it. If you want a physical wallet like paper one but also easier to use, consider a hardware type.
How does bitcoin hardware wallet work?
Shaped like a pendrive, hardware BTC wallets are as attack-immune as paper wallets but also more convenient for a user. Obviously, as the device has to be manufactured in the first place, it's the only type that is not free to get. For the price sometimes reaching $200 a customer gets a device that can be stored in a safe place and connected via USB to a computer when needed. All the crucial information you need to have to use the BTC network is inside this little, handy device.
Some of them come with a little screen displaying a special code the user needs to enter to be able to send money. Thanks to that, it's almost impossible to crack these things.
For customers aiming at software-based wallets, let’s have a look at desktop type.
For customers aiming at software-based wallets, let’s have a look at desktop type.
Let's say you don't want to use a web wallet, decide to keep all your information for yourself BUT don't want to use a paper wallet and don't want to spend anything on hardware one. The best option for you is the desktop wallet or the mobile one. There are really similar to each other, the only difference is the platform you install them on. Obviously, the desktop one is designed to work on your PC, and a mobile wallet can be installed on your smartphone with iOS or Android operating system.
Those wallets work offline and generate individual keys after being installed so nobody has access to your credentials. However, there's a major security issue. If the hacker manages to put malware on your computer it's really easy for them to steal your money. Therefore, if you decide to choose this kind of wallet, make sure you have your anti-virus software updated and you follow all of the safety instructions and everything will be alright.
Web Bitcoin wallet is what you choose for convenience.
When you can give up a little security and privacy for a lot of convenience, web wallet is just for you. It's nothing else but a virtual wallet placed on some company's servers you can log into. It means that someone just stores all the information about your account but thanks to that you can access it anywhere and whenever you want. Even though it might seem dangerous to just trust someone, if you choose a decent company keeping their safety standards high, there's no need to worry.
What Bitcoin wallet is the best?
If there was the best of the best type of wallet, the other ones would already disappear. Different types are suitable for different purposes, just think which one suits you the best. If you still cannot decide, there's nothing that stops you from having few wallets of different types. A little overview of what you are going to deal with:
Paper wallet – great security, not convenient, cannot access your money in case of wallet loss
Hardware wallet – great security, more convenient but you still need to have it physically, cannot access your money in case of wallet loss, not free
Desktop wallet – good security, accessible from just the personal computer it's installed on, usually a few backup ways to get access to your money in case of credentials loss
Web wallet – least secure and most convenient because of the location in the web cloud, many backup ways to get access to your money in case of credentials loss
Make a few and see for yourself which one you can call the best!