There are basically three types of BTC wallets to store your bitcoins, and other cryptocurrencies, on a safe place. The two main types are Cold Wallets and Hot Wallets, the third type, the Account Balance on Exchanges like Livecoin, is not a real but a virtaul wallet, as the most exchanges store their Bitcoins in one real btc Wallet (In fact, two wallets, a hot wallet for fast withdraws and a cold wallet with the main capital!), the acount balance is just a data set the website usees to keep track!
Hot BTC Wallets
Hot wallets are hot as they are constantly connected to the world wide web, giving attackers the oppertunity to try to hack it! Examples of this wallet type can be found at big bitcoin exchange website like Coinbase or Hitbtc, and mobile app wallets and the most online wallets.
The “traditional” Desctop wallet is also a hot wallet as long as it is connected to the internet! If your PC is disconnected from the www, your Desktop Wallet is a cold wallet (almost)! Anyway, you control your private keys, and you can secure your wallet to prevent hacking attempts. Be careful, if you lose your private keys, you will lose your Bitcoins too! So ensure to keep them on a safe place in the case your PC gets in trouble!
There have been many instances of theft in hot wallets. Some hackers have even managed to steal millions of dollars’ worth of bitcoins! Hot wallets are great for your day to day money, but ensure to keep your mayority of your capital in a save offline (cold) wallet!
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Cold BTC Wallets
Cold btc wallets are the preferred storage method if you want to be on the safe side! There are differnt types of cold wallets like Paper Wallets you can simply print or Hardware Wallets, small optimized PCs only managing your cryptocurrencies or Bitcoins!
Paper wallets appear a little bit funny at first, but it’s precisely why it’s one of the best types of wallet for long-term storage! With paper wallets, there is zero chance of anyone hacking anything on paper. A problem may be htat they can be stolen or destroyed in tghis case they are lost forever! So ensure to keep your paper wallet safe, consider putting it in a safe environment.
The hardware Wallet is a physical offline device that’s pretty much like a small pc or USB device, it can be plugged into your PC if you want to transfere Bitcoins from your Cold Wallet to someone else! The three most popular these days are the Trezor, Ledger Nano, and KeepKey. All three will cost you some money but will definitely help to secure your bitcoins and other crypto-currencies.
Ensure to browse this site to find the best wallet for your needs!