Bitcoin Wallets are currently one of the most reliable online platforms when it comes to cryptocurrency management. The entire system is decentralized, which makes it highly secure. New Bitcoin investors might be wondering which is the most reliable, safe, and easy-to-use Bitcoin Wallet. Not to worry, as this article defines Bitcoin, the various types of wallets, and how each one works.
Defining a Bitcoin Wallet
This particular cryptocurrency wallet works pretty much like a safety deposit box that securely stores your Bitcoin. It’s used for service payment and also allows cryptocurrency transfers from your wallet to different exchange platforms.
The three main types of Bitcoin wallets
- Exchange wallets
Exchange wallets are mandatory when you want to obtain Bitcoins. They typically link your bank account and enable you to deposit and also withdraw fiat currency. However, clients don’t own the data in Exchange wallets since they’re not private.
- Hot wallets
This wallet is convenient when you transact small amounts of cryptocurrency regularly. Hot wallets are connected online and are also more secure when compared to exchange wallets. However, you’ll need a third-party platform like an exchange wallet or ATM to convert your crypto into fiat currency.
- Cold wallets
Cold wallets help store your Bitcoin safely offline. However, you need a third-party platform to conduct a crypto transaction. It’s worth mentioning that cold wallets become less secure when you involve a third party to transact.
Choosing a Bitcoin Wallet suitable for you
Selecting an ideal Bitcoin wallet depends on two things, the type of investment you want to engage in and the type of transaction you wish to carry out.
- Opening an Exchange Wallet
Other than using a Bitcoin ATM, you’ll need an exchange wallet to get Bitcoin. Before opening an exchange account, always ensure that you do a background check of all available crypto exchange wallets to find the most ideal and secure one.
Immediately you open an account, you’ll receive instant services by acquiring an exchange wallet. After opening your new exchange wallet account, deposit some crypto to get the same fiat currency value after deduction fees. Despite this particular platform acting as an intermediary link for private wallets, it’s advisable never to use it for long-term storage.
- Opening a Hot Wallet
Although there are various types of Hot wallets, they all have one principle: they operate bitcoin transactions and are connected online. The procedure for opening a Hot Wallet is almost the same as an exchange service sign-up, although there are a few steps before getting either your public or private keys after an account opening.
It’s recommendable to inquire more about the Hot Wallet options currently available to avoid signing up on fraudulent ones. Its common knowledge that popular Hot Wallets with positive reviews are most likely authentic and secure.
- Opening a Cold Wallet
Opening a Cold Wallet involves using hardware devices such as USBs, which the Bitcoin Wallet company must deliver to a client. In other words, Cold Wallet activation using hardware devices is never instant; however, there’s an alternative that involves creating an instant Bitcoin Cold Wallet in paper form. Using the latter method entails using a block explorer or separate Bitcoin transaction client to confirm your wallet balance.
Bitcoin Wallets have revolutionized the way we transact. However, regardless of your wallet option, it’s recommendable to create Bitcoin Wallet with Bitamp, one of the best and most trusted Bitcoin wallets.