What Is a Bitcoin Wallet? Different Types of Wallets

A bitcoin wallet is a file that contains private keys. These private keys enable a bitcoin owner to access their bitcoins. In simpler terms, wallet can also be called a bitcoins bank account. However, there are differences that you cannot find bitcoins in a wallet as it is the case with a bank account. You only get private keys to enable you find your bitcoins.

A bitcoin wallet is installed in your computer to the extent that you can control it. You can either have software wallet, a web wallet or paper wallet.

Software Wallet

The process of finding a bitcoin software wallet is very easy and anyone and everyone can be able to use it. There are various companies that are able to offer software wallets. You can choose any of them depending on their security and stability.

The biggest complaint about software wallet is that there is a block chain download that is undesirable for the majority. There exists at least 18 GB file size of the software. However, this type of wallet is secure and it is easier to access.

Paper Wallets

Paper wallets are desirable by the people who want to run away from the digital world of bitcoins. You can write or print out the private or public keys on a piece of paper. This type of wallet is ideal for someone who needs to store bitcoins on a long term basis.

Web Wallets

Web wallets are of many types and are provided by different companies. They may be integrated with fiat money and may allow the use of debit and credit cards. They are convenient for many. However, the biggest fear is that the security of your bitcoins may be compromised greatly with this type of wallet.

Cold Wallets

As to try to answer the question on what is a bitcoin wallet, you will realize that there are also other wallets known as cold wallets. These are wallets that are not connected in any way with the internet. For instance, this can be the paper wallets or storing the software wallets on a USB. These cold wallets are said to be safer and secure as opposed to other types of wallets.

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