Which types of wallet better for bitcoin? which wallet better for bitcoin secure
Bitcoin wallet can be classified into 2 namely:
1. Hot Wallet
2. Cold Wallet
HOT WALLET
Is a wallet that is connected to the internet or that is online. A hot wallet can be accessed from anywhere in the world and from most internet enabled devices. For this reason, a hot wallet is susceptible to attack from hackers if it is not well secured. Maximum security on your Bitcoin can only be attained using a cold wallet.
Types of Hot wallet include:
Online Wallet or Web Wallet
This is the most common type of Bitcoin wallet. Just like the name implies, web wallets are hosted in the cloud by a third-party company. It has an advantage of being able to be accessed from location and from any web browser on most Internet-enabled devices. Examples of companies that provide web wallets include. Coinbase, Luno, Blockcahin.info etc.
Mobile Wallet
A mobile wallet is a wallet that comes as an application installed on our mobile devices, mainly Android, iOS and Blackberry. Most web wallet provided has a mobile wallet app which is synced to the online wallet.
Desktop wallet
Just like the mobile wallet above, desktop wallets are wallet application downloaded and installed on a personal computer or laptop.They are easy to use and available for the different operating system. Examples of desktop wallet include Amory and mSIGNA.
COLD WALLET
It is a wallet that is not connected to the internet and it is usually on a device or a paper. A cold wallet is the safest form of Bitcoin wallets. It is almost impossible to hack a cold wallet. The hacker would have to get hold of your device and your passkey to access your cold wallet which in this case would be a human error.
The idea is, for long-term storage, store your bitcoin in a cold wallet.
Also, Hot wallets are usually free while Cold wallets may cost to purchase the device.
Types of Cold wallet include:
Paper Wallet
The paper wallet is inform of paper which contain two things which are the public address to received bitcoin and private key to gain access to bitcoin and spend it. One of the advantages of the paper wallet is that it is not prone to attack from hackers since it is offline.
Hardware wallet
The hardware wallet is one the safest and convenient type of bitcoin wallet. It is advised that anyone having bitcoin for storage in excess of $1,000 in worth should have a hardware wallet. Hardware wallet comes in form of a USD stick. You simply plug it in your computer to access and send Your Bitcoins. The hardware wallet does not need to be plugged into a computer to receive Bitcoins.
So to choose the best wallet depends on the rate of transaction, size of transaction, Cryptocurrency exchange and storage.
• Small and frequent transactions: Online wallets or Software wallets
• Cryptocurrency exchange: Online wallet (but only the amount that you play with)
• Occassional big transactions: Hardware wallet
• Storage only: Hardware wallet or paper wallet