Bitcoin as a currency has to be saved somewhere while being sold or purchased on the crypto trading platforms like here. For that purposes-there are wallets, Bitcoin wallets are there so that the person can save their currency and sell it at any future date.
A private user key is generated while the person owns the bitcoin and can sell it through that private key only. There are a lot of different types of bitcoin wallets available, which are explained in detail below-
- Mobile wallets
This is the type of wallet which is suitable for your mobile phone. It will result in a smoother overall process while trading because a mobile phone comes in handy, and you can trade from anywhere in the world if you have a mobile wallet with you. It might also be possible that the mobile wallet used by you may not be reliable. In that case, you should do proper research before selecting the wallet.
Just by downloading the application on your mobile phone and storing the private keys, you can easily buy and sell bitcoin from any location. It is always good to have bitcoin; only to the extent you will need it. In case of a larger transaction, you can shift to a paper wallet. Therefore, mobile wallets for bitcoin offers convenience more than anything else.
These are the types of wallets that are suitable for your desktop or laptop. The access to your desktop might get in the hands of some other person, which can land you in trouble- which is the reason these options are not considered as the safest available option. Since they are desktop wallets, they are installed on the computer. If we compare desktop wallets with mobile wallets or web wallets, they are certainly far safer.
It is the type of wallet where you get the services of wallet online where you can purchase or make sales of the bitcoin. They are more or less similar to Mobile wallets only. The web wallets are considered the most vulnerable type of wallet where there remain the chances of hacking. There might be insurance coverage for losses incurred in some cases, but this is only for some of the web wallets.
The safest types of wallets are hardware wallets. The security of the investor is not at all compromised in the case of hardware wallets. These types of wallets resemble a USB Drive. Users’ private keys are safe as far as hardware wallet is concerned. Since they are hardware wallets, most of them have screens that act as a security. It is also necessary to be aware that the hardware wallet is not purchased from a marketplace where used items are sold because it will lead to fraud.
Now a lot of times, investors confuse this that the coin is saved in the Bitcoin wallet, which is not the case. Instead, the private key is saved in the wallet- Bitcoin is only saved on the blockchain.
Safety of Bitcoin wallets
Bitcoin wallets are considered safe from the investor’s point of view, but their safety also depends upon the security provided by the crypto trading platform. In order to ensure the safety of your Bitcoin, you can easily choose cold storage options because if the internet itself will not be used, then it is out of the reach of hackers. Another thing is to keep your private key highly confidential because sharing it with someone will land you in trouble. Investors can convert their wallets to fiat currency as and when they want. Also, this differs in the case of multiple crypto exchange platforms.
The aforementioned types of Bitcoin wallets are readily available to use, and you should choose one that meet your needs and requirement. There are a lot of crypto trading apps where you can sign up and get your bitcoin wallet-the commission fees might vary in the case of different crypto trading platforms. It might happen that you are just a casual investor – in that case, you can go for a USB drive wallet because all the above-listed wallets won’t serve your purpose.