Topic: Types of wallets. Which one's the best? (Read 257 times)

There are two main different kind of wallets. Core wallets and SPV wallet.
Core wallets (of every coin, not only for bitcoin) are the "original" client which hold the complete blockchain in its full size, this means that if you want i.e. use BitcoinQt wallet you will need to download and synch the whole existing blockchain before you can effectively send and receive transactions.
SPV wallets downloads only a small portion of the blockchain, the newest part of its blocks, connecting to "trusted" servers which provides the headers for the recent past blocks so that SPV wallet doesn't have to download the whole blockchain in order to get synced.

SPV wallets also includes hardware external wallets such Trezor and similar.

So basically if you are not an high end skilled user it's preferable that you use SPV wallets. Just remember to use all the precautions to avoid losses of you BTC, such strong passwords, safe storage, don't download untrusted software in your pc and much more.

Yes, I agree with you. A combination of desktop wallet and paper wallet or hardware wallet may be the best option security-wise. Thanks!

Hey mate. Thanks a lot! This is very useful information. I'll have to take in cosideration the pros and cons, but right now I'm leaning towards Trezor.

I recommend web wallets for ease of use. But desktop and hardware wallets are the most secure ones. I use Myetherwallet and Neon Wallet most.

I've used a few wallets
But I'm very comfortable storing my coins on my blockchain wallets
Because it offers flexibility and it's extra lightweight.

Yep, wallet security is paramount. A lot of the horror stories you hear in the crypto-space revolve around security measures that weren't up to par.  

That said, the main types of wallets and what makes them unique:

Web-wallets (exchanges): easiest to use, most convenient in accessing your coins but most vulnerable for attack. With the web wallets your private keys, and essentially your coins, are not yours since the app or site are the one's truly holding them.

Desktop wallets: a step up from webwallets, they provide a level of convenience but ultimately in terms of security they are only as safe as the computer you're using. Some of these provide cold storage solutions though which is good. Electrum is a very popular software(desktop) wallet.

Hardware (external) wallets: Inherent cold storage solutions, as they always hold your coins offline (until you're ready to make a transaction) thus making them the most secure from potential malware. These are always a good option for storing large amounts of coins.

There's paper wallet options as well, which really just means having a printed copy of your private key on paper. This is regarded as highly secure as well since it's in your custody...just don't lose it. Ultimately why not have a couple? The perfect wallet combination depends on the person and managing them all is a skill that takes some time. Hardware is great for holding currency, but if you're trading, you'll also need something a little more convenient.

Cheers!

Ledger supports more coins than Trezor. But ledger, at one time, can support only 4 coins instead with Trezor you can access to all the coins it supports

So if you have coins that Trezor doesn't support,it will be better to buy Ledger

Coins supported by Trezor: https://doc.satoshilabs.com/trezor-faq/overview.html

Coins supported by Ledger Nano S : https://support.ledgerwallet.com/hc/en-us/articles/115005304449-Check-the-list-of-cryptocurrencies-and-tokens-supported-by-Ledger-here

Another difference that I find quite important and its not always considered for desktop or mobile wallets is about fees for transactions

exodus (desktop) and freewallet (mobile + web) > don’t let you control those fees and u can pay 5$ when you don’t really need to have a fast transactions

Hey guys.

If I were to buy Trezor or Ledger Nano S. Which one should I pick? Which one is better?

wallets can be divided into five types

1) Web Wallet-
Online wallets are typically cryptocurrency wallets that you access via your web browser.online wallets are incredibly attractive to hackers but this is the fastest way to complete transactions.

2)Mobile Wallet-
these wallets are More practical and easier to use than other wallets.there are QR code scanning features.but your Your phone is open to malware, keyloggers, and viruses.

3)Desktop Wallet-
desktop wallets is are more secure than web wallets and mobile wallets. but If connected to the internet there are security and privacy caveats and you should back it up. 

4)Hardware Wallet-
Hardware wallets are less user-friendly wallets but great for storing large amounts of cryptocurrency.  it’s the most secure way to store crypto long-term. There is a tronger security than all other wallets.

5)Paper Wallet-
Before hardware wallets, paper wallets were the defacto standard for cold storage of cryptocurrencies.
but More effort required to move cryptocurrencies around and More technical understand required.

Currently I'm not very active. I'm just trying to learn enough before I start actually working with cryto, so I don't have  lot of daily transactions. Should a beginner like me start with trezor / nano ledger or just get a desktop wallet?

Yes, you're right. It's better to diversify and have different amounts in several wallets instead of putting all your eggs in one basket. A very good advice. I'll definitely follow it. 

Ok, I'll try to get on the waiting list to get one of those then. Thank you! 

A very good point. Are there any basic steps or best practices to check whether my PC is infected or not?

I didn't know about the hot and cold distinction. You've made the explanation very clear mate. Thank you!

This article is great and the website contains some very useful information. Thanks a lot! 

Thank you mate! I didn't know there were so many options. I'll definitely check them out.

TREZOR

Wow! Thank you so much. This info is very useful. I've already read the first article and now I'm going to read the other suggested articles.

Buy physical wallet and also have online wallet, dont store everything at one place

I don't see this link (below) yet, it's an abbreviated list of wallets segmented by the way you want to access it. It's a beginner's resource, but a good starting point for anybody. Please note that it's not an exhaustive list and it's focused on Bitcoin wallets.


Things to consider as you go through your search: Bitcoin - Choose Your Wallet

There are around 10+ ways to store Bitcoins but I believe that storing funds in the offline manner is the best option in terms of security but one should always keep in mind that he is the sole person responsible for his actions. I am fan of paper wallet and Trezor wallet when it comes to the offline holding.

* 12 Ways To Store Bitcoins Review - Hardware, Desktop, Mobile, Online & Paper Wallets?

This article might help you to understand the 12 ways to hold Bitcoins and take your decision.

you can read some more thread [General] Bitcoin Wallets - Which, what, why? (it seems you've known this in your other thread)
or if you prefer wiki style explanations, I posted in another thread awhile ago (quoted below)
if you still have questions or unclear on some info on these reading materials
then ask it here... we are a friendly community for newbies wanting to learn (but not for merit whiners who care only about ranking up for signature campaign)

If we are talking about security, trezor, nano ledger s, and the likes are the best wallet to use if it is for holding since it is  very securebut they can't be classified as the most convenient wallet to use when one is doing transactions daily in his wallet. If it is for daily usage, I recommend desktop wallets as they have more security than web wallet and also security wise althiugh they are less secure than hardware wallets.

I personally think a paper wallet is the safest as long as you generate it offline and securely. Next safest is a hardware wallet (such as Leger Nano or Trevor) which also requires that you set it up securely and protect your pass phrase.

The least secure wallets are the ones where you don’t control the private keys yourself. I personally have some coins on paper wallets, some on a Ledger Nano S, and a little on an exchange.

Basically, there are two kinds of wallet:
1. Hot Wallet
2. Cold Wallet

1. Hot Wallet:
                    A Hot Wallet is a wallet that is connected to the internet, and is used for day-to-day transactions. They are mostly used to store smaller amounts of Bitcoin as they are not too secure. Web wallets, Mobile Wallets, and Desktop Wallets are Hot Wallets as they are connected to internet and are used for usual transactions.

2. Cold Wallet:
                     A Cold Wallet is a wallet that has no internet access, and is used for storing Bitcoins for long-term. They are more secure as they need no internet access and are safe from phishing or any other kind of attacks. Hardware Wallets, Paper Wallets and sometimes Desktop Wallets (if not connected to internet) are used as Cold Wallets, to store Bitcoins for a longer time.

Now, each one of them has their own advantages and disadvantages. Like, Web Wallets has the disadvantage of Phishing or hacking attacks, and they often don't give you access to your Private Keys. Sometimes a wallet even can be a scam and run away with the Bitcoins of people. Advantage of Web Wallets is that they are user-friendly and fast too.
On the other side, Desktop wallets has no such disadvantages, but there are fears of keyloggers and other similar attacks. Their advantage is that they are safe from Internet attacks (Phishing, hacking), and the private keys are stored in your PC.
Paper and Hardware wallets can be lost, in such a situation, you will lose all your funds store in any of them, but they have the advantage that they are totally safe from attacks of any kind, meaning you are totally safe as long as you have them to yourself.

That is a small explanation of wallets. I hope I made them quite clear for you.

At the moment i think security wise, For Android, Samurai is awesome, you can get it here: https://play.google.com/store/apps/details?id=com.samourai.wallet&hl=en

Other then this one, you can get Ledger and Trezor. But you have to wait for them to be in stock(dont buy them from reselers).

Webwallets are arguably the worst ones. -- You are dependant on their service & sites, and with most of them it is really hard to access your private keys ( blockchain.info), plus you're missing alot of functionality, RBF/ CPFP / etc.

Desktop wallets such as bitcoin core and Electrum both provide full security ( in terms of access to keys etc, ) and full functionality. Although if your PC is ratted/infected, i wouldn't be so sure how safe they would be in that case. I believe that there shouldn't really be a problem if you have strong encryption, but don't quote me on that..

External wallets ( Trezor/Ledger nano S),  people usually say these are the safest, and the best, due to them  being encrypted and very movable ( like a USB-stick, you can take them anywhere you go!). I'm not sure if Nano/Trezor offer the same functionality as bitcoin core / electrum though.

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks!