If you want to buy Bitcoin in Canada or anywhere else, you should know that you must select a place to store your newly acquired cryptocurrency. In other words, you need a Bitcoin wallet. The thing is Bitcoin wallets come in different forms and each of them has some advantages and disadvantages. In order to make the best decision, we will now explain the five main types of Bitcoin wallets.
This type of wallet is popular because it’s quite handy to manage your bitcoins with its help. For instance, you can use it to buy things in physical stores that accept bitcoins thanks to the QR codes. Keep in mind that mobile wallets are not comprehensive Bitcoin clients because they don’t contain the whole Blockchain.
As the name suggests, this wallet is installed and used on a computer/laptop. In this way, you will get full control over your coins. This is also a very affordable solution. Depending on the subtype of desktop wallet you select, you may have a chance to get independent security management, use network blocks and more.
In the last few months, there is an increased interest in paper Bitcoin wallets. The main reason for this is very simple – this wallet provides great safety features. A paper Bitcoin waller represents 2 QR codes that are created with the help of a designated electronic device. The first one is a public key, your address where you can get bitcoins. The second is a private key that allows you to spend bitcoins.
Experienced and knowledgeable Bitcoin users, often use hardware Bitcoin wallets. They represent specially designed portable devices that are able to keep private keys and aid payment processing. If you do some research, you will notice that there are few different versions of hardware Bitcoin wallets. What all of them have in common is that they let users store as many bitcoins as they want.
The last type of Bitcoin wallet is the online/web wallet. The private keys of Bitcoin owners are stored online when you use this kind of wallet. The server that supports the wallets is managed by 3rd party operator. It’s very easy to access your cryptocurrency from any computer or mobile device regardless of your location when you use online wallets. However, there is a relatively high risk, that your wallet may get hacked.