What Type of Bitcoin Wallet Should I Use?

Bitcoin WalletDeciding which type of Bitcoin Wallet to use is one of the questions that gets posed most when embarking on a crypto currency mission. There are desktop wallets, mobile wallets, hardware wallets, online wallets and even something called a brain wallet. What are they you ask? Well this article will teach you about the different types of Bitcoin wallets. You can even watch our informative videos on how to create and then fund your own bitcoin wallet.

What is a Bitcoin Wallet?

Your bitcoin wallet is basically like the virtual equivalent of the one you carry around in your pocket, or handbag. They hold the private keys that you use to access a Bitcoin address and make purchases, or transfer funds to a peer. You lose access to your wallet, just like in real life, you lose the funds that are stored in there. So it is crucial that you back-up any passwords or addresses that are particularly valuable.

Hardware Wallets

A hardware wallet is a device that you can connect to your computer and keep your private keys externally to your computer, and more importantly not accessible from the internet. Current products which are in use are Trezor and Mycelium, which have both had strong reviews.

Another product is the Nymi Sports Wristband, which uses your heart’s rhythm as a security key, and also stores your Bitcoin information.

The benefits of using a hardware wallet are that you are storing your virtual currency in a place that malicious hackers, cannot access over the internet, or server that you’re connected to.

Online Wallets

Online wallets are exactly as they sound. You hold an account with someone else and they store your private keys on a server connected to the internet. There are plenty of different Bitcoin Wallets that cater to cryptocurrencies and have strong reviews.

Sometimes these online wallets will work across several different platforms, including desktop and mobile wallets, allowing you to access and use your bitcoins at any time.
Arguably the most popular wallet is Coinbase, who are both Bitcoin wallet and exchange. They also cater to US Bitcoin users.

Another wallet that BitcoinAnytime recommends is Blockchain, who have proven to be security conscious and easy to use.

Paper Bitcoin Wallets

Storing your bitcoins in a paper wallet is printing your bitcoin addresses and private keys onto a piece of paper. This is preferred by some because you are not allowing someone else to store your information.

There are now services that will even turn your bitcoin key codes into QR codes.

How can I keep my bitcoins safe?

Storing them at a respected online wallet, or lashing out and buying a hardware wallet are two good ways to begin.

But the way to keep your bitcoins safe is to have strong passwords on any Bitcoin associated accounts, keep them in a safe place, don’t tell your friends your passwords.

Obviously there have been several high-profile security breaches like when the Mt Gox exchange had millions stolen from it, but these incidents are isolated and as more time goes on the resources put into keeping our accounts safe are becoming more prevalent.

How can I stay anonymous while using Bitcoin?

Well yes it is anonymous, but at the same time you can track every block of the blockchain down the line. So theoretically if you had signed up at Bitcoin wallet and deposited money from your bank account it can be tracked.

If you wish to remain completely anonymous, there are things you can do to safeguard yourself. These include depositing money via a bank branch into your Bitcoin wallet account’s fiat account.
You can also use tools like coin mixing which put your bitcoins in a communal pool, before reissuing them to different people.

Keep your wallet safe

Strong passwords are the key to keeping your Bitcoin wallet secure. Make sure they are not your mother’s maiden name, or your birthdate.

Another thing you can do to safeguard against online attacks is use a hardware wallet, like you read about above.

You can also write down all the important codes that prove that you’re the owner of whatever amount of bitcoins.