4 Types of Bitcoin Wallet you need to know

[xBDT Script 4371]

We often talk much about which wallet to use, which one is convenient to use, which one is secure, etc. I am going to share 4 types of bitcoin wallet and their features shortly.

1. Web Wallet
This is very well known to use- Coinbase, blockchain.com etc. Web wallets are very risky to use. They can be hacked any time.

2. Software Wallet
Software wallets are like bitcoin core, Electrum, Mycelium etc. These are also connected online but not web wallet. These wallets have benefits of holding seed key or private keys, These are better for daily using of BTC. Not much better for long term though.

3. Hardware Wallet
Hardware wallets are cold storage where you can hold the private key safely. This is very much recommended for long term holding of bitcoins. Example like- Ledger Nano, Keepkey etc.

4. Paper Wallet
Paper wallets are very cheapest methods for having the been fits of cold storage. It's holding the private key in a paper. This is very easier method of storing bitcoin.

Please share you thoughts.

[xBDT Script 4371]

28 minutes ago, ergvojtamauro2278 said:

So which type of wallet is best? People often use type 1 but it is also vulnerable to hacker attacks. I think type 3 would be safer, but the cost to buy it is quite expensive.

Hardware wallet and paper wallet both are considered as cold wallet,these 2 types of wallet are best for storing bitcoin. Have low risk since you are holding these wallets data into offline. You can use Paper wallet if you are not interested in spending some money on purchasing a hardware wallet.

Another article I have written on detailed about paper wallet here- 

 

[xBDT Script 4371]

1 hour ago, dianamushi said:

o what's the difference between this and a software wallet.

In hardware wallet, we are keeping our private key offline. it's unlikely to get hacked. On the other hand, in software wallet our private key is connecting with online which is less secure.

1 hour ago, dianamushi said:

and what if i buy a flash drive and install a portable wallet in it, would it functio like hardware wallet?

The theme is almost same but these are not secure enough since it may get damaged. 

[hexwin 4931]

What do you mean price is not cheap for hardware wallets.... they are worth from 30$ or 50$ and I don't think that is expensive at all... but if you want to use something for free you can use Electrum wallet and some old smartphone with no SIM card and no internet connection.

[xBDT Script 4371]

Just now, hexwin said:

What do you mean price is not cheap for hardware wallets.... they are worth from 30$ or 50$ and I don't think that is expensive at all...

I get it what you mean but do not forget this money is a lot of money for some people around the world. Not many can afford it. You and me and some others are may be lucky to have the luxury to say it's not much.

Thing is with Electrum you can secure your coins and it works same as a hardware wallet but you Hexy will not like it if I tell it in here however for @moree4 here it is:

Try using multiSig wallet 😁 Hexy! go away LOL

[xBDT Script 4371]

Just now, dana33 said:

Nice thread as usual mate. For newbies or a new user of bitcoin and cryptocurrency, i recommend to choose web wallet because it's easier to understand and easy to use too for newbies. 

Appreciate the feedback but I will not recommend anyone to use web wallets at least not when you have good amount of BTC.

Think like that - Web wallet is the wallet which you keep with you, I mean the money bag. But do you keep all your money in the money bag that you carry? NO. Your savings and everything you keep them in a Bank.

So a hardware wallet or a MultiSig wallet will work as a bank for you and for daily expense you can keep some in the web wallet or in the mobile wallet.

[I-KUN 422]

I believe hardware wallet is the safest wallet. It isn't too expensives. I spent my $100 for buying it. But i didn't regret it. I better lost my $100 for buying something useful for my money than losing all of money that i store in untrustworthy wallet.

[hexwin 4931]

18 minutes ago, xBDT Script said:

I get it what you mean but do not forget this money is a lot of money for some people around the world. Not many can afford it. You and me and some others are may be lucky to have the luxury to say it's not much.

I bet they all have smartphones and they are worth 5 or 10 times more than any hardware wallets.
Anyway I also gave free alternative in my previous post

[xBDT Script 4371]

4 minutes ago, I-KUN said:

I believe hardware wallet is the safest wallet. It isn't too expensives. I spent my $100 for buying it. But i didn't regret it. I better lost my $100 for buying something useful for my money than losing all of money that i store in untrustworthy wallet.

This is why I said in other thread that it worth to buy when you have good amount of BTC. For example if you have $200 worth of BTC then paying $50+ for a hardware wallet is not much okay. In this case use Electrum standard wallet but say if you have $5k worth of BTC and this is a lot of money for you then spend around $50 to keep your coins safe in a hardware wallet.

Just now, dianamushi said:

what does we mean, secure from hackers or secure from the developer of the wallet?

To broadcast and sign a tx they will need to hardware device you have so it is not going to be possible for them to hack the fund if obviously you do not hand over your device to then 😁

[ROBY 4]

42 minutes ago, I-KUN said:

I believe hardware wallet is the safest wallet. It isn't too expensives. I spent my $100 for buying it. But i didn't regret it. I better lost my $100 for buying something useful for my money than losing all of money that i store in untrustworthy wallet.

I completely agree with you, I also use hardware portfolios. Less safety is true but more comfort, because always available.

49 minutes ago, dana33 said:

Nice thread as usual mate. For newbies or a new user of bitcoin and cryptocurrency, i recommend to choose web wallet because it's easier to understand and easy to use too for newbies. 

I also think so, but many prefer the hardware wallet because of greater security and it is understandable anyway

[bliznec 22267]

At this time, I simply use the Yobit exchange to store bitcoins because the amount is small. In the future, I prefer Coinbase or another wallet in the form of a flash drive, which is very safe for storing bitcoin.
I would like to find another bank where you can order an electronic card for storing bitcoin and ethereum. 

[xBDT Script 4371]

3 minutes ago, ROBY said:

The hardware portfolio is certainly safer, but a desktop wallet is more convenient. Always at hand, without physical media

Hardware wallet is better for long time holder while software wallet is for day to day life usage. Hope you got my point.

Just now, clarityfund said:

can you maybe set up a guide on how to make your own paper wallet? i have always wondered how that actually works and i think its probably the safest way to store your bitcoin.

I will do it couple of hours later and will not forget to mention you. It's very easy, you can get it on google and youtube as well.

Just now, bliznec said:

At this time, I simply use the Yobit exchange to store bitcoins because the amount is small. In the future, I prefer Coinbase or another wallet in the form of a flash drive, which is very safe for storing bitcoin.
I would like to find another bank where you can order an electronic card for storing bitcoin and ethereum. 

Coinbase, yobit these are some sorts of web wallet and you must not use web wallet for storing bitcoin. use Paper wallet for long time, mate. It's free of cost.

[bliznec 22267]

Just now, xBDT Script said:

Coinbase, yobit these are some sorts of web wallet and you must not use web wallet for storing bitcoin. use Paper wallet for long time, mate. It's free of cost.

I did not try to store cryptocurrency on Coinbase, but I heard that the withdrawal of funds is much higher than usual with the withdrawal of the commission. Oh yes, a paper wallet is a great tool, but it doesn’t support bitcoin.

[xBDT Script 4371]

Just now, clarityfund said:

Thank you! i tried using a youtube tutorial but i ended but being more confused than i was before the video. maybe i just watched the wrong video... Ill be waiting for your guide here on the forums

Did you somehow checked this kind of tutorial- https://www.wikihow.com/Make-a-Paper-Wallet 😁 😁

Check this one please- https://coinsutra.com/make-bitcoin-paper-wallet-spend-bitcoins/

this is very much easy. just have a try attentively.

Just now, bliznec said:

Oh yes, a paper wallet is a great tool, but it doesn’t support bitcoin.

Bitcoin isn't supported on Paper wallet?

[bliznec 22267]

4 minutes ago, xBDT Script said:

Bitcoin isn't supported on Paper wallet?

It is not supported. But there are services that prevent storing bitcoin and this is a webmoney wallet. I don’t know more, alas. 

[xBDT Script 4371]

4 minutes ago, TheChinaBan said:

Can you please elaborate on the paper wallet, this is the wallet I don't fully understand of the four types you are presenting here. I am using the above three but not this one or maybe I am just not aware that I am already having them. Please tell me more, sir! 

Sure, here I have written a shorter details of paper wallet. If you don't understand, please comment with your concern, I will gladly help you.

2 minutes ago, bliznec said:

It is not supported. But there are services that prevent storing bitcoin and this is a webmoney wallet. I don’t know more, alas. 

https://walletgenerator.net/

Go to the link and generate a paper wallet for Bitcoin. If you are not referring that, I am really having hard time understanding your words.

[bliznec 22267]

2 minutes ago, xBDT Script said:

https://walletgenerator.net/

Go to the link and generate a paper wallet for Bitcoin. If you are not referring that, I am really having hard time understanding your words.

Oh, thank you, I have been using this wallet since 2017, it is a very convenient wallet that gives a guarantee for storage. 

[xBDT Script 4371]

Just now, TheChinaBan said:

Is there something wrong with the site or is Chrome just overacting (the best actress trophy)?

Best actress Trophy forever, it works fine here from Brave browser. I don't know about other though.

The address is official of a open source project- https://github.com/walletgeneratornet/WalletGenerator.net

Make sure you are following the rules when you are going to generate a paper wallet to avoid any kind of potential risk.

[xBDT Script 4371]

7 minutes ago, alexnambawan said:

Well I know only wallet that is only available in our country but most of the wallet you mentioned is I don't know and so much appreciated if this wallets will help me find the best that I must need. 

All these wallets are available in any country of the world, that's why bitcoin is called border-less. You can use from anywhere. Your country may ban using bitcoin but they can't restrict you using bitcoin wallet or using bitcoin. read the topic and other replies, you will learn which wallet to use for what purpose.

[ultimateclub 392]

On 10/28/2019 at 8:22 PM, xBDT Script said:

We often talk much about which wallet to use, which one is convenient to use, which one is secure, etc. I am going to share 4 types of bitcoin wallet and their features shortly.

1. Web Wallet
This is very well known to use- Coinbase, blockchain.com etc. Web wallets are very risky to use. They can be hacked any time.

2. Software Wallet
Software wallets are like bitcoin core, Electrum, Mycelium etc. These are also connected online but not web wallet. These wallets have benefits of holding seed key or private keys, These are better for daily using of BTC. Not much better for long term though.

3. Hardware Wallet
Hardware wallets are cold storage where you can hold the private key safely. This is very much recommended for long term holding of bitcoins. Example like- Ledger Nano, Keepkey etc.

4. Paper Wallet
Paper wallets are very cheapest methods for having the been fits of cold storage. It's holding the private key in a paper. This is very easier method of storing bitcoin.

Please share you thoughts.

Thanks for the sharing the species of wallets. Still now i use online wallets. But i think now it's time to move on hardware or paper wallet. I also want to know, how much riskier if i hold my coins in an exchange site for long time trading? 

[xBDT Script 4371]

Just now, ultimateclub said:

how much riskier if i hold my coins in an exchange site for long time trading? 

it's very risky. can you remember the cryptopia hack last year? Whoever had hold fund there, they have lost it. Even very much trusted and reputed exchanges can also be hacked. So, it's better to use your own wallet rather depending on a 3rd party. It's the same as holding my money on a bank< LOL. while holding in own wallet mean I AM the BANK for myself.

[ultimateclub 392]

4 minutes ago, xBDT Script said:

it's very risky. can you remember the cryptopia hack last year? Whoever had hold fund there, they have lost it. Even very much trusted and reputed exchanges can also be hacked. So, it's better to use your own wallet rather depending on a 3rd party. It's the same as holding my money on a bank< LOL. while holding in own wallet mean I AM the BANK for myself.

So i shouldn't trade for a long period. I should transfer my coins in my own wallet if I don't want to take risk. Right? I wish, i can kill all the black hackers in one day!

[xBDT Script 4371]

2 hours ago, ultimateclub said:

So i shouldn't trade for a long period. I should transfer my coins in my own wallet if I don't want to take risk. Right?

If you are actively trading that's something else, you are forced to hold balance in exchanges. But don't hold balance which you are not using for trading purpose in the exchanges. It's not safe for even 2/3 days. 

[dhemasm 219]

On 10/28/2019 at 9:22 PM, xBDT Script said:

We often talk much about which wallet to use, which one is convenient to use, which one is secure, etc. I am going to share 4 types of bitcoin wallet and their features shortly.

1. Web Wallet
This is very well known to use- Coinbase, blockchain.com etc. Web wallets are very risky to use. They can be hacked any time.

3. Hardware Wallet
Hardware wallets are cold storage where you can hold the private key safely. This is very much recommended for long term holding of bitcoins. Example like- Ledger Nano, Keepkey etc.

 

Nice info for newbie the best choice i really recommend web wallet in this case 2 website above (Coinbase, Blockchain.info) Was the best choice far after you have some fund i really recommend Hardware wallet like ledger nano for more safety than other wallet, Thanks for sharing this information!

[hexwin 4931]

@xBDT Script What do you think about Armory  desktop bitcoin wallet?
I see it is rated very good on bitcoin.org website, but I never used it so far.