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Types Of Bitcoin Wallets: A Closer Look At The Choicest Alternatives

David Prior by David Prior
June 13, 2022
Reading Time: 4 mins read
Types Of Bitcoin Wallets: A Closer Look At The Choicest Alternatives
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Do you want to further your investor career in the world of Cryptocurrency? 

Are you wondering how to handle your Bitcoins in a manner that’s safe and convenient? 

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Are you worrying about losing out on the investment opportunity that Bitcoins currently provide? 

You have arrived at the right destination because we are here to provide a solution to your Crypto woes! 

Yes, you read that write! 

Have you heard about Bitcoin wallets, or for that matter Cryptocurrency wallets? 

Simply scroll down and find out how you can gain an immediate edge as a Bitcoin investor with the help of these wallets so that you can continue your Crypto investment through platforms like immediate edge! 

Bitcoin Wallets – What Are Those? 

A Crypto wallet typically functions as a type of wallet application for all your Cryptocurrencies. The reason why these are known as wallets is because these are used in a manner that’s similar to the wallets people use everyday for keeping their cards and cash. 

Instead of storing any physical items, a Crypto wallet holds your passkeys for signing into your Crypto transactions. And not just that, it also provides you the interface for accessing your Cryptocurrencies. In fact modern Crypto wallets even makes it possible for everyone to access the Blockchain.

Bitcoin wallets are naturally a Crypto wallet and function similarly. As an investor dreaming to gain an immediate edge in the Cryptocurrency market, it is ideal to start your Crypto journey with Bitcoins. In this context, wouldn’t it be great if you knew which type of Bitcoin wallet would be perfect for you?

Today happens to be your lucky day and we are here to tell you exactly that! Keep reading to find out more on the same. 

Comes In Varieties: Types Of Bitcoin Wallets

Broadly, there are two different wallet types, one is known as custodial, while the other is known as non custodial. While custodial wallets are the ones hosted by third parties responsible for storing your passkeys, non custodial wallets are the ones that allow you to be in charge of your passkeys. 

There are other types of wallets too. For instance, wallets can be categorized as hot wallets and cold ones. While the cold wallets are the ones not connected to the internet or for that matter to any device with the same, hot wallets are the exact opposite of that! Hot wallets are either connected to the internet or to some device with the internet.

Another popular category if when you divide the categories of wallets into,

  • Software,
  • Hardware, and
  • Paper.

Let’s find out more about the same! 

Software Wallets

Software wallets are applications designed for mobile devices and desktops. Once installed on your device, software wallets can easily,

  • access your Bitcoins,
  • make transactions, and
  • Display balance.

A software wallet can also perform additional functions, like exchange integration in case you have to use a wallet that is designed by some Crypto exchange. These are naturally hot wallets. 

Pros

  • Built-in exchange,
  • Varieties of Crypto tokens, and 
  • Great customer support.

Hardware Wallets

Hardware wallets are quite popular since these enable users to store their private passkeys and easily remove the same from their devices, resembling an USB drive. For using your hardware for making a transaction, you will simply have to plug the same on your device. 

If you want to gain an immediate edge over hackers then you can opt for versions of hardware wallets with automated Crypto transactions  – these don’t need users to put their passkeys by eliminating the risk of hackers screen recording. These are a type of cold wallet.

Pros

  • Web-based user-interface,
  • Built-in exchanges, and
  • Web-based user interface.

Paper Wallets

Early users of Cryptocurrency would often type or even write their passkeys on paper which came to be known as paper wallets. The concept gradually evolved and now includes both QR codes and passkeys making it easy for wallets on any mobile device to scan the same. 

However, since paper wallets have a high possibility of getting damaged easily or even lost for that matter, most Crypto investors steer clear from these wallets. But at the same time, you can always use paper wallets, as long as you store them safely and check in on them from time to time. 

And It’s A Wrap: Time To Invest On A Bitcoin Wallet!

If you want to gain an immediate edge in the Bitcoin market, it’s best that you invest in a Bitcoin wallet. You can start with any type and check out which one suits you the best. 

David Prior

David Prior is the editor of Today News, responsible for the overall editorial strategy. He is an NCTJ-qualified journalist with over 20 years’ experience, and is also editor of the award-winning hyperlocal news title Altrincham Today. His LinkedIn profile is here.

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