Bitcoin wallets are crucial in the Crypto market. However, many people still do not fully understand what a Bitcoin Wallet is. How many types of BTC wallets are there, and which should you use? Let’s explore with vietnam – ustrade.org in the following article!
What is a Bitcoin (BTC) Wallet?
A Bitcoin Wallet (English term: Bitcoin Wallet) is an encrypted file that stores and protects Bitcoin for the owner, only the wallet user can know the wallet password.
What is a Bitcoin (BTC) wallet address?
A Bitcoin wallet address (English term: Bitcoin Address) is a sequence of 2 characters used for deposit and withdrawal transactions of your BTC.
The BTC wallet address can also be used to check transaction details such as:
- amount of BTC
- transaction time
- transaction acceptance status
- recipient/sender wallet address
User can create multiple BTC wallets on the same wallet, and each e-wallet service provides you with a unique BTC wallet address.
Hot BTC storage wallets
For example, online Bitcoin wallets are a type of BTC storage wallets online, capable of Bitcoin transactions, and need to be connected to the internet at all times if users want to use them. Below are some evaluations of the advantages and disadvantages of hot BTC wallets:
Advantages:
- Can register for free Bitcoin wallets
- Easy to set up
- Convenient for buying, selling, or paying with Bitcoin
Disadvantages:
- Security features are not as optimal as cold wallets
Cold BTC storage wallets
Cold Bitcoin wallets are used to store BTC offline; you do not need to connect to the Internet but can still perform transactions.
Advantages:
- Cold Bitcoin wallets or hardware wallets have the highest security level among current BTC wallets
- Hacker cannot attack because it does not need internet connection
Disadvantages:
- Cost to purchase a cold wallet is quite high, ranging from 2.5 to 3.5 million VND.
- If you lose the wallet and do not remember the recovery phrase, all coins in the wallet will be lost.
- The process of setting up and sending/receiving BTC is more complicated than hot wallets.
Top 4 reputable and safest BTC storage wallets in 2020
Online Web Bitcoin Wallets
Online Web wallets are currently popular types of BTC storage wallets, further divided into two types:
Service web wallets
Service web wallets are provided by a company to support storing Bitcoin and some other AltCoins.
Users can refer to wallets like Coinbase and Blockchain, which are two of the safest and most reputable web wallets today, both also support mobile applications.
Exchange wallets
Exchange wallets are provided by international exchange platforms when users create accounts to trade and buy/sell coins on these exchanges.
Note that BTC exchange wallets should only be used for short-term storage for trading purposes; afterward, users should withdraw their BTC to a personal wallet for security.
Software Bitcoin Wallets on Computers
Software wallets (English term: Software Wallet) are a type of hot wallet; investors can download this wallet software onto their computers to directly manage their Bitcoin holdings. Some software wallets also support mobile apps, which are very convenient and safe.
Software Bitcoin wallets’ advantage is that users will retain the Private Key, control their funds, and the service only provides a platform, not control or hold the owner’s coins.
Some popular software wallets include Exodus, Jaxx, Bitcoin Core, Bitcoin.com, etc.
Hardware Wallets (Cold BTC Wallets)
Hardware wallets or cold Bitcoin wallets are completely offline, resembling a USB device; users need to connect to a computer via USB to conduct transactions. This makes it impossible for hackers to steal money from the wallet.
Currently, some safe and reputable cold BTC wallets include Trezor, Ledger Nano S, KeepKey.
Paper Wallets (BTC Paper Wallet)
Paper Wallets (English term: Paper Wallet) are a type of cold storage, consisting of a piece of paper with the Private key and wallet address information printed, along with a QR Code for use when needed.
Advantages include being able to trade normally without Internet connection, making it very safe from hacker intrusion.
However, this wallet type is easily torn or damaged, and users may lose access to their BTC.
You can refer to some reputable sites that allow you to generate Bitcoin paper wallets, such as SafePaperWallet.com, BitcoinpaperWallet.com, BitcoinAddressUtility, BitAddress.org, etc.
Conclusion
Above is an article sharing useful information about Bitcoin wallets and the Top 4 reputable and secure Bitcoin storage wallets in 2020. Hope this will be helpful to you. Wishing you find a suitable BTC wallet type.
