What do traders and investors need to know about a Bitcoin wallet?

Bitcoin continues to grow in value as more and more businesses promote using the cryptocurrency as means of exchange. Bitcoin trading or investing in Bitcoin can prove to be very lucrative.

As the crypto market keeps providing the traders and investors with more and more opportunities, more and more people enter the market looking to earn profits.

Bitcoin trading can be made a lot easier with the help of an automated trading platform or a trading robot, such as bitcoinfortress.io.

However, if you are looking to enter the crypto market as a Bitcoin trader or an investor, you will need to know about Bitcoin wallets and learn how you can store your Bitcoins in a wallet.

It is important to note that Bitcoin is a form of currency that only exists digitally. So it is important to know about the different types of Bitcoin wallets and equally important to choose the one that will meet all of your needs.

Let us look at the different types of Bitcoin wallets, these are mainly divided into two categories.

Cold wallets are also known as offline wallets. There are two subcategories of this type: Hardware Wallets and Paper Wallets.

Hot wallets are also referred to as software wallets and there are three subcategories of this type: Desktop Wallets, Mobile Wallets and Web Wallets.

Bitcoin Wallets.

All of the Bitcoin traders and investors will require a Bitcoin wallet in order to store their digital assets. As we have mentioned above, there are many different types of wallets.

Some wallets may be more secure than others, some wallets could be more easy to use and easy to access. It is important to choose the one that meets all of your requirements. As an investor you might have different needs than that of Bitcoin traders.

Hardware Wallets.

If you are serious about investing in Bitcoin, then using a hardware wallet can prove to be very helpful. It is perhaps the most reliable and secure type of Bitcoin wallet.

The private access keys will also be stored in a hardware device, like a USB device, which will only be accessible through your system. However, in order to get a hardware wallet, you might be required to pay some amount.

Paper Wallets

Paper or metal will be required if you want to use paper wallets. You will have your wallet with you in a physical form with your Bitcoins stored in it.

However, you may not be able to access your Bitcoins if you lose the coin or paper. Many people think that this is quite similar to normal currency wallets.

Desktop wallets

Desktop wallets is the name given to desktop applications that you can install to your system. For such wallets, the private access key will be kept in the hard drive of your system.

You will have to login in order to access the private access key and perform transactions online. It is important to make sure you store those files very carefully and securely. You might not be able to get those files back if you lose those files or delete them by mistake.

Most of these desktop wallets should be compatible with famous operating systems like Windows, Linux and Mac. We shall now look at some reputable desktop wallets.

Exodus is one of the best desktop wallets for Bitcoins and altcoins. The interface is user friendly, so makes the wallet easy to use even for beginners. Electrum is another good desktop wallet.

It is one of the oldest Bitcoin wallets and it comes with a lot of tools and features. Guarda is another famous Bitcoin wallet that also lets the users trade their cryptocurrencies. It comes with an inbuilt crypto exchange.

Mobile Wallets

Mobile wallets are the most widely used Bitcoin wallets and perhaps the most convenient as well. However, mobile wallets might not be as secure as desktop wallets.

Your private access key will be stored in a third-party app, making it vulnerable to cyber-attacks. There are different mobile wallets available for both iPhones and androids. Let’s look at some of the best mobile wallets for Bitcoin.

Trust Wallet is one of the best wallets that can be used for many different cryptocurrencies, including Bitcoin. BRD wallet is another very simple and easy to use Bitcoin wallet. This mobile wallet doesn’t even need the users to sign up.

Web Wallets.

You can access a web wallet from any device from anywhere in the world as long as you have an internet connection. To access these wallets you will be required to visit a website.

As your Bitcoins will be stored in the cloud, there might be many risks involved making these wallets not very safe. The most trusted and famous web wallet is Coinbase. It provides wallet services and a crypto exchange platform.