4 Main Types of Bitcoin Wallet Every Beginner Must Know

| Updated on March 27, 2024

After you make your mind perform bitcoin trading, then the first thing you should pay attention to is the bitcoin wallet. It’s because, in the entire trading process, the bitcoin wallet plays a crucial role. The main reason behind the same is that a wallet is required to store bitcoin after buying from all risks such as scammers or hackers. Also, the wallet is used for sending or receiving bitcoin to and from anyone. In other words, you can say that a wallet is mainly required for performing any activity, such as making payments or buying anything with bitcoin.

The most popular question that arises here is how to find out the best wallet in 2020? There are numerous wallets present in the current year, but among all of them, only a few are capable of doing safety at a great level or better security. Everyone needs to know that they can easily do trading by getting access to a great bitcoin wallet. They only have to prefer the Trend Catcher as after then they can easily get better results. To learn more about the particular system, you have to do good research online.   

Four Types of Bitcoin Wallet

When it comes to the bitcoin wallet, then the most important thing knocks on the door of mind is bitcoins’ safety. That’s why it is always recommended to choose the best wallet for storing bitcoin after buying a to get top-notch results. Below are the main types of bitcoin wallets that everyone needs to understand and then pick the right one accordingly.

  1. Hardware Wallets – amongst all types of bitcoin wallets, the safest and secure is the hardware wallet. In the same type of wallets, the bitcoins are stored on a physical piece by plugging into a USB port. The main objective behind such a type of wallet is to protect bitcoins from virus attacks or all other risks. The most important thing is that only hardware wallets cost between 100-200 $ among all four types of bitcoin wallets.
  2. Mobile Wallets – here comes the most used and easiest way to protect bitcoin, mobile bitcoin wallets. One can simply choose any of the mobile wallets, and after then, they can simply perform all payments, or you can say send or receive coins by touching. In other words, bitcoin users store coins by touch-to-pay or by NFC, i.e., near field communication. Some of the major examples of wallets for mobile are Mycelium Wallet or many others. Only IOS and Android mobiles are compatible with such wallets. So, the best option is to do a good search and then pick the right one to protect your bitcoins after buying safely.
  3. Web Wallets – the third main type of wallet is the web. With the help of the same type of wallet, users can easily get access to their bitcoins from anywhere to anytime. When dealing with web wallets, the only thing you should remember is that they require private keys to store your bitcoins. The most popular or used web wallets are Blockchain or Coinbase. 
  4. Desktop wallets – here comes the last type of wallet. These are similar to mobile wallets as one can simply install them on a desktop of a computer or laptop. Here, the users get full control over the wallet. The same type of wallet performs functions with the address to send to receive BTC.  Not only is this in desktop wallets, but users also get the option to store the private key. The most popular desktop wallets are Hive OS X, Bitcoin Core, and several others.

After knowing all types of wallets, whatever type of wallet you choose, the only thing that matters a lot is using it in the right way. One should know all the latest updates or news to know how to use the wallet perfectly. Only after then, users become able to make payments or perform bitcoin trading to earn good profits.

Final words

I hope that the entire information mentioned above helpful for beginners. They need to go through all types, know the plus and negative points of a bitcoin wallet to choose the right one for getting positive results finally.

John M. Flood

John is a crypto enthusiast, Fintech writer, and stock trader. His writings provide guides to perform your best in the crypto world and stock planet. He is a B-Tech graduate from Stanford University and also holds a certification in creative writing. John also has 5 years of experience in exploring and understanding better about the FinTech industry. Over time, he gained experience and expertise by implementing his customized strategies to play in the crypto market.

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