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Bitcoin Wallet: how to choose?

There are different forms of Bitcoin wallets that meet different requirements - here's how to choose a Bitcoin Wallet

Il Bitcoin (BTC) is a digital currency: since i Bitcoin they do not exist in any physical form or form, technically they cannot be stored anywhere.

It is the private keys, which are used to access the Bitcoin public address and transaction signatures, which must be stored securely.

A combination of the recipient's public key and private key is what makes a Bitcoin transaction possible.

bitcoin wallet how to choose - Bitcoin wallet: how to choose?

Bitcoin Wallet: types

There are different forms of Bitcoin wallets that meet different requirements and vary in terms of security, convenience, accessibility, and so on.

Let's find out below what the types of Bitcoin Wallet.

Bitcoin Paper Wallet

Un paper wallet it is essentially a document that contains a public address to receive Bitcoins and a private key, which allows you to spend or transfer Bitcoins stored in that address.

Paper wallets are often printed in the form of QR codes so you can quickly scan them and add the keys to a software wallet to make a transaction. A Bitcoin paper wallet it can be generated using services such as BitAddress or Bitcoinpaperwallet, which allow users to create a random Bitcoin address with their own private key.

The generated keys can then be printed, with some services offering a tamper-proof design or even an option to order holographic labels.

The main advantage of a paper wallet is that the keys are stored offline, which makes it completely immune to hacker attacks, including malware that can record the user's keystrokes.

However, you need to take some precautions when creating a wallet.

Before generating a paper wallet, you need to make sure no one is watching you while you do it.

To rule out the risk of any spyware monitoring your activities, it is recommended that you use a clean operating system, such as Ubuntu, running from a USB flash drive or DVD.

Also, once the Bitcoin Paper Wallet is set up, the website code should be able to work offline, which allows you to disconnect from the internet before actually generating the keys.

Physical Bitcoin

Il Physical Bitcoin it is usually preloaded with a fixed amount of BTC and the intention is that its value cannot be spent as long as the private key remains hidden.

This is usually achieved by using a tamper-proof seal.

The first of its kind, Bitbill, was in the shape of a credit card, but most of the alternatives that followed were in the shape of a round medal.

Mike Cadwell, a cryptocurrency enthusiast nicknamed “Casascius,” created the first of the popular Casascius physical Bitcoins in 2011.

The private keys were hidden under a detachable hologram, when removed, they left a noticeable mark.

Once redeemed, the coin lost its digital value. Since then, there have been several new coin producers.

Physical Bitcoins are a convenient way to store your funds more securely and can be extremely useful when trading offline.

In addition, they have recently become a valuable collector's item. The main drawback, however, is serious.

In November 2013, Mike Cadwell was asked to cease operations by the Financial Crimes Enforcement Network, as his job was considered a money transmitter.

The regulations for this business were unbearable, so he was forced to stop selling items containing digital Bitcoins.

It is necessary to take some measures to protect that piece of paper.

It is recommended to keep it in a sealed plastic bag and keep it in a dry and safe place to avoid water damage and general wear and tear.

Some people prefer to laminate it and store it in a safety deposit box.

Bitcoin Mobile

For those who actively use Bitcoin on a daily basis, pay for goods in stores, or exchange them face-to-face, a mobile BTC wallet is an essential tool.

It works like an app on your smartphone, stores your private keys and lets you pay for things right from your phone.

Additionally, some apps allow users to use the near-field communication feature of their smartphones, which means they can simply tap the phone against the terminal without having to provide any information.

Any full Bitcoin client requires access to the entire ledger blockchain, which is constantly growing and requires several gigabytes of storage space.

For these reasons, mobile wallets take advantage of simplified payment verification technology.

They only work with small subsets of the blockchain, relying on trusted nodes in the Bitcoin network to ensure they have the correct information.

You can lose control of your wallet if someone simply gets access to your mobile device. There is a large variety of Bitcoin wallet apps for Android devices.

Apple banned Bitcoin wallets from the App Store in February 2014, but overturned its decision several months later.

Jaxx, Breadwallet, Electrum, Exodus are examples of Bitcoin Mobile.

Bitcoin Web Wallet

I Bitcoin Web Wallet they store your private keys on a server, which is constantly online and controlled by a third party.

Different services offer different features, some of which can connect to mobile and desktop wallets and replicate your addresses on the devices you own.

Just like mobile wallets, e-wallets allow their users to access their funds on the go from any internet-connected device.

If not properly secured, the organizations running the website may have access to your private keys, thus gaining total control of your funds.

Some e-wallets operate on Exchange and there have been instances where exchanges have closed and gone with their users' funds.

Bitcoin Desktop Wallet

I Bitcoin Desktop Wallet they are downloaded and installed on your computer, storing your private keys on your hard drive.

They are safer than online and mobile wallets, as they don't rely on third parties for their data and are more difficult to steal.

They are still connected to the internet, which makes them inherently less secure.

However, desktop wallets are a great solution for those who trade small amounts of Bitcoin from their computers.

There is a variety of different desktop wallet options that meet different needs.

Some focus on security, others on anonymity, and so on.

Electrum, Jaxx, Exodus, Wasabi Wallet are the main Wallet Desktop.

Bitcoin Hardware Wallet

Un Bitcoin Hardware Wallet is a Bitcoin wallet that stores the user's private keys in a secure hardware device.

It is the safest way to store any amount of Bitcoin. There have been no verifiable cases of money being stolen from a hardware wallet.

Unlike paper wallets, which have to be imported into software at some point, hardware wallets can be used securely and interactively.

They are immune to computer viruses, stored funds cannot be transferred from the device in plain text, and in most cases their software is open source.

Some Hardware Wallets even have screens, which add an extra layer of security, as they can be used to verify and view important wallet details.

A screen can be used to generate a recovery phrase and to confirm the amount and address of the payment you wish to make.

So as long as you invest in an authentic device made by a reputable and knowledgeable manufacturer, your funds will be safe.

Ledger, Trezor, KeepKey and BitLox are the main Hardware Wallets.

Bitcoin wallets and security

Possible problems

Malware capture. Malicious software can scan your hard drive and find your private keys. A few seconds later, all of your Bitcoins can disappear.

A trojan can encrypt all files on your hard drive. Later, it may find all the links to your wallets, then realize how much money you have and demand the exact amount of Bitcoin to decrypt your hard drive.

Advice

Avoid using any type of wallet that requires an Internet connection; use cold storage options instead.

Always be cautious and double check everything. For example, you may receive an email that appears to be from BlockWallet, but is actually from BlockWallet. If you authorize it, your Bitcoins could disappear immediately.

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Jacqueline Facconti

Graduated in Business Economics and Strategy, Management & Control with 110 cum laude from the University of Pisa, editor and editorial collaborator for various blogs and Economic and Business sites

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