Bitcoin needs no introduction as it has already become a trend all over the world. Everyone knows about bitcoins, but some people don’t have proper knowledge about the important aspects related to them. After buying bitcoins, you need to keep them safe from hackers; the best way to do it is by using bitcoin wallets. Before you pick a bitcoin wallet to secure the bitcoins, you must know the features you need to look out for while making the final decision.
When it comes to choosing a bitcoin wallet, the most basic thing you need to check is the user interface. The interface of the wallet can affect your experience to a great extent. So, you must check it beforehand and ensure that the wallet has a user-friendly interface. If it has a simple and friendly interface, you will be able to use all the features easily. If you are a beginner, it is highly important to choose a wallet with a simple interface; otherwise, you won’t be able to use all the features easily.
There are different types of wallets, and nowadays, most users prefer accessing bitcoin through their mobile phones. So, you must check if the wallet works on the mobile phone as it will be more accessible and will offer maximum convenience. If you have enough experience and knowledge about bitcoin, you can use a full bitcoin client as it will provide you with more advanced features.
Privacy and Anonymity
With increasing risks of hacking and only data breaches, it has become highly important to protect your privacy, especially when you are using bitcoins. So, before you choose a bitcoin wallet, you must check if it offers a good level of privacy and anonymity or not. You also need to check if the wallet has any registration process, such as KYC, as it will ask for your personal and financial details. If you want to stay anonymous and don’t want to reveal your personal information while using bitcoins, it is best if you choose a bitcoin wallet that allows you to register by providing minimum details. It will allow you to store bitcoins safely and make easy transactions without compromising your privacy.
Control on Private Keys
Bitcoin wallet is a digital wallet, so there is no physical key that you can use to access. These wallets can only be accessed by using unique private keys. Some bitcoin wallet provides complete control on the private keys to the users whereas some of them store the private keys with third parties. It is a crucial thing to check while choosing a bitcoin wallet as if the wallet is storing the private keys with a third party; it clearly means that you have no control over them.
It is quite risky as anyone can sign in to your wallet using the private keys and use the funds stored in it. So, you must try to choose a wallet that ensures that you have complete control over the private keys so that you can use your funds anytime and anywhere without asking for approval from anyone.
What Type Do You Prefer?
Checking the features and functions is the second thing as before that you need to decide which type of bitcoin wallet are you looking for? There are several bitcoin wallets in the market, and each one is different from one another. Some of the common types of bitcoin wallets are desktop wallets, mobile wallets, paper wallets, hardware wallets, etc. Basically, the bitcoin wallets are divided into two categories.
What is a Hot Wallet?
A hot wallet is a type of wallet connected to the Internet. It allows you to make online bitcoin transactions and access the funds stored in the wallet through the Internet. It is easy to use but is exposed to some online risks such as malware, phishing, hacking, etc.
What is a Cold Wallet?
A cold wallet refers to an offline bitcoin wallet. These wallets store bitcoins without any internet connection and are considered to be the safest bitcoin storage. The cold wallet may be a bit boring and frustrating to use, but they provide the bitcoins with maximum security.