4 Types of Bitcoin Wallets Cont’d

Written by on January 1, 2017 in Bitcoin Information, Featured

bitcoin wallet

 

There are 4 main types of Bitcoin Wallets:

 

  1. Desktop Wallets
  2. Mobile Wallets
  3. Online Wallets
  4. Hardware Wallets

 

In a previous post we discussed the first two which you can find by  “CLICKING HERE”

 

Today we will cover the last 2, which in my opinion, are the best options for most people.

For most of us, we are simply looking for a secure way to store and access our Bitcoin without having a degree in computer science to figure out how to set things up and make transactions.

 

Online Wallets are by far the most popular and user friendly type of wallet out there. Online wallets are accessible from anywhere you can access a computer. Depending on the provider, Online Wallets can be bare bones with limited features while others have a rich suite of options and features.

Blockchain.info and Coinbase are the 2 best know online wallets.  

Coinbase is located in San Francisco USA. They fight for the #1 position with blockchain.info and you’d be hard pressed to find a reason to not go with them.

Blockchain.info is very respected, easy to set up and use and the transaction fees are very low.

 

Online Bitcoin wallets are easy to set up have a simple interface., You can access them from anywhere in the world from any of your devices. There is a potential downside however…your private key is stored on someone else’s server on the other side of the globe. Even the most trusted and well respected institutions can have a bad apple working for them.

To counter this Hybrid Bitcoin wallets have been developed.  These hybrid wallets act the same as a regular online wallet except that the Bitcoin private key which is required to send money is encrypted in your browser before it reaches their servers.

That means that you and only you, have the private key to access your bitcoins and you still have all the benefits of an online wallet.  Strongcoin is the leader in Hybrid Online Wallets and they have been securing wallets since 2011.  We strongly recommend you check them out and consider what they have to offer.

 

The last of the 4 types of Bitcoin Wallets is Hardware Wallets.

 

Hardware Wallets

For those of you with substantial Bitcoin holdings, you may not want to entrust access to your private keys to anyone. In that case you either need to write them down and hope you don’t lose them, or you store them in a digital vault.

Hardware wallets provide the ultimate in digital security. They are dedicated devices that can hold private keys electronically and facilitate payments. They are incredibly small devices. They are secure for storage, sending and receiving transactions online. The developers make use of top grade cryptography and take them take through continual scrutiny.

The leader in the Hardware Wallet front is TREZOR

Trezor came on the scene in 2014. TREZOR is a small, key-sized device which connects to your computer with a USB cable. Trezor generates a 24 word seed which is done offline and displayed on the screen this ensures the device was never connected to the internet.

Trezor also requires a PIN code on setup and is required for spending your bitcoins. After each incorrect guess the wait between guesses is raised by a power of two. Making 30 guesses would take 17 years.

The point here is that it is SUPER SAFE!

There are other Hardware wallets out there but Trezor gets our vote!

So there you have it, the 4 main types of Bitcoin Wallets. If you missed the first 2 you can read about them here.

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