All wallets are classified as either hot or cold. One that is connected to the internet or
is online is said to be ‘hot’. On the other hand, ‘cold’ implies it is offline or disconnected
from the internet.
'Cold' is considered the most secure, thus, recommended for storing large amounts of bitcoins.
'Hot' is suitable for frequently accessed funds. Therefore, the best strategy is to use cold
storage for long term holdings and a hot wallet for regular use.
Online web wallets
If you want an easier and faster way to obtain Bitcoin wallets, all you will do is to use a web base wallet.
Hosted or web-based wallets store your keys online and can be reached from any point on Earth that has an
internet connection. In this case, your keys are stored with a third-party company, which means you should
look sharp and choose a reliable provider. But there’s an advantage: providers also takes care over address
rotation, backup and overall wallet security. Popular bitcoin desktop includes:
They are designed to be downloaded and used on laptops and personal computers. They are easy to access and
use even when the computer is not connected to the internet.
Desktop wallets are a great option for anyone sending frequent Bitcoin payments from their computer.
A solid desktop wallet is the perfect middle ground for even the most enthusiastic cryptocurrency investors
and traders. Like with any crypto wallet, there is a balance between security and convenience when choosing
a desktop wallet to use with your cryptocurrency investments. Popular bitcoin desktop includes:
We use phones for most tasks these days and bitcoin wallets tailored for your Smartphone is therefore
very convenient. Mycelium
and Blockchain are both
available on Android and IOS. For Blackberry,
Bitcoin Wallet is one of the few available.
Perhaps, one of the most handy features on mobile wallets, apart from enhanced security features, is
the QR code capability. It enables instant payments.
If you thought bitcoins were digital only, then think again. Paper wallets can securely hold your
bitcoins in cold storage form for a long time. You can store this form of wallet it in a safety
deposit box along with your other valuables.
In order to generate a paper wallet, you use sites such Bitaddress.org or Blockchain.info. Once they are generated, you print them out on a piece of paper.
These are the original bitcoin wallets used by the pioneers of the currency. Computers installed with
these wallets form part of the core network and thus have access to all transactions on the blockchain.
BitcoinQt, was the first ever
built bitcoin client wallet. Many believe it is what Satoshi Nakamoto used. With it, you play a role
in the overall state of the network. Another with richer features is
Electrum, a lightweight client.
Ledger HW.1 are quickly becoming
popular as portable physical vaults. They are incredibly small devices. They are secure for storage,
sending and receiving transactions online. Their developers make use of top grade cryptography and take
them take through continual scrutiny.