A Bitcoin wallet is a software program in which Bitcoins are stored. They provide the tools required to interact with a blockchain. The four main types are desktop, mobile, web, and hardware.
For small amounts which are less than a price of a hardware wallet, use Web or Mobile wallet (like this one - Bento is a Web wallet). If you have advanced computer skills and are confident in your computer, use Desktop wallet. If you are planning to store higher amounts of Bitcoin, use hardware wallet.
Web wallets facilitate access to Bitcoins from anywhere, on any browser or mobile device. Service providers will hold and manage the private keys on your behalf. Although this is convenient, it's opens you up to a small possibility of keys being lost or hacked.
Desktop wallets are applications downloaded and installed onto your computer, storing your private keys on your hard drive. It's important to make sure your computer is clean of viruses and malware before setting up and using a cryptocurrency wallet.
Mobile wallets function much like their desktop counterparts but designed specifically as smartphone applications.
Hardware wallets are by far the most secure type of Bitcoin wallet as they store Bitcoins on a physical piece of equipment that is usually plugged into a computer via a USB port. They are practically immune to virus attacks, and few instances of Bitcoin theft have been reported. These devices are the only Bitcoin wallets that are not free, and they often cost between $100 to $200.
The wallet includes an address, which is an alphanumeric identifier that is generated based on the public and private keys. Such an address is, in essence, a specific "location" on the blockchain to which coins can be sent to. This means you can share your address with others to receive funds, but you should never disclose your private key to anyone.
The private key (or seed/mnemonic phrase) gives access to your cryptocurrencies, regardless of which wallet you use. So even if your decide to use a different wallet solution, you can still access your funds using a different method.
|Published||Mon Jun 05 2023>|