What are Bitcoin wallets?

At this moment in time, there’s no way to keep and use bitcoin if you do not have a bitcoin wallet. These are used to store the private keys needed to access your bitcoin address, and spend the funds that you have stored on them.

There are a wide variety of bitcoin wallets that you can opt for, each with its advantages and disadvantages. To put things better into perspective, we’ve summed up some of the most popular storage methods below.

Desktop wallets

In case you have the original bitcoin client installed on your computer, you are implicitly running a wallet, which you can use to create bitcoin addresses, needed to spend and receive bitcoin, while also storing the private key needed to access the wallet.

Online wallets

Web-based wallets are some of the most popular forms of bitcoin wallets, due to the fact that your private keys are kept online. The main advantage of these wallets is the fact that you can access your funds from anywhere you may be, as long as you have an internet connection.

Mobile wallets

Similar to web-based wallets, mobile wallets are great when you are out of your house, and wish to spend or receive bitcoin quickly. Used in physical stores as well, you simply need to tap your smartphone against a specific NFC reader in certain stores to send payments. When it comes down to receiving funds, you can either share your bitcoin address, or ask for a QR code to be scanned.

Hardware Wallets

There are several types of hardware wallets, and most of these are used to hold private keys offline, and facilitate payments. Their main advantage is their security, as there’s no way for someone else to hack their way into your wallet, unless you simply give it out to them.

Based on everything that has been outlined so far, what type of bitcoin storage do you fancy most?