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What is a Bitcoin Wallet? A Detailed Guide on Different Types of Bitcoin Wallets

A Bitcoin wallet (BTC wallet) is a software program which stores Bitcoin in electronic form. Bitcoin wallets enable the carriage of Bitcoins from one address to another. They also assign possession of the Bitcoin balance to the individual having access to the private keys of the wallet.

A Bitcoin wallet or a digital currency wallet is not a physical thing but a software program for holding decentralized assets (in this case, Bitcoins). In order to enable security, BTC Wallets comprise a private key. The key is connected to the specific address of the wallet.

The cryptocurrency wallet is available in multiple forms. The four types of Bitcoin wallet are desktop, mobile, web, and hardware.

Different Types of Bitcoin Wallets

In order to trade Bitcoin (BTC), a crypto trader needs to set up his Bitcoin wallet aka virtual currency wallet. A Bitcoin wallet (which stores virtual money) is similar to a physical wallet (which stores physical money). The digital asset wallet stores pertinent info. This includes the protected private key used to get admittance to one’s Bitcoin address and carry out corresponding transactions. The four primary types of Bitcoin wallets include desktop, hardware, mobile, and web wallets.

Desktop Bitcoin Wallets

The first type of BTC wallets are called Desktop wallets. They are typically installed on the desktop of the user. They work primarily as an address for the user to send and receive digital assets like Bitcoins and Ethereum. Furthermore, these wallets permit one to store secret keys. Some examples include Bitcoin Core, Electrum, Wasabi, etc.

Hardware Bitcoin Wallets

The second type of Bitcoin wallets are called Hardware wallets. Hardware BTC wallets are one of the most widely used and one of the safest sorts of BTC wallets. This is because, hardware-based cryptocurrency wallets store Bitcoins on a physical section of apparatus that is typically connected with a computer by means of a USB port. Theoretically, these cryptocurrency wallets are resistant to virus bouts. However, few occurrences of cryptocurrency stealing have been reported in the past by using hardware wallets as well. Some examples include Trezor and Ledger hardware wallets.  

Mobile Bitcoin Wallets

The third type of crypto wallets are called Mobile crypto wallets. Mobile BTC wallets perform the same functions as a desktop wallet. Mobile wallets enable outgoings in physical stores by means of QR code scanning. Mobile Bitcoin wallets can be either iOS based or Android based. Examples include Bitcoin wallet, Bither, etc.

Web Bitcoin Wallets

The fourth type of cryptocurrency wallets are web wallets. Web based Bitcoin wallets simplify admittance to BTC from anywhere, on any mobile device or browser. The selection of your web wallet must be done prudently. This is because it stores the private keys online. Some examples include Blockchain wallet, MEW (My Ether Wallet), Bread, and exchanges with their own wallets like Coinbase and Binance.