You can store and transmit Bitcoins using Bitcoin wallets, which are hardware or software. Secure wallets are used to store the private keys necessary for signing Cryptocurrencies. The coins linked to that account can be managed by anyone who has access to the private key. One of the most secure methods of storing cryptocurrency is to use a hardware wallet. Multi-cryptocurrency wallets can store and execute transactions in multiple cryptocurrencies.

The Blockchain can be accessed via a crypto wallet, which is a computer application or physical device. It is often mistakenly thought that crypto wallets are storage devices, but they are really devices for controlling blockchain addresses cryptographically. Blockchain addresses are identified by private keys, which correspond to the private key of a Bitcoin wallet. A user’s authority over the cryptocurrencies in the address is given by these keys, which are used to authenticate Bitcoin transactions. A hacker who obtains a wallet’s private keys can transfer Bitcoins to their wallet if they have access to that address.

A secure Bitcoin wallet can be classified into 4 types:

●       Hardware wallets:

Hardware wallets provide the greatest level of security because private keys are stored on a physical device that is not connected to the Internet. Similar to a USB drive, these devices look like thumb drives. Users need to connect their hardware wallets to their computers when performing Bitcoin transactions, which allow them to sign transactions without revealing their private keys. Almost no viruses are present in hardware wallets, and thieves are virtually impossible to steal from them. The price of these gadgets typically ranges from $100 to $200. There are two well-known companies that produce hardware wallets: Electrum and Ledger.

●       Desktop wallets:

Computer desktop wallets provide users with complete control over the wallet through software applications installed on the computer’s desktop or laptop. In certain desktop wallets, you can find additional features such as node software and exchange integration. In contrast, desktop wallets are considered insecure since they are vulnerable to hacking. Among the most common desktop wallets are Exodus, Armory, and Hive OS X.

●       Web wallets

A web wallet is a service that allows you to send and receive Bitcoin online. In many ways, online wallets are similar to email in the way that they can be accessed from anywhere and on any device. There is also a concern about security. Furthermore, phishing and malware can steal users’ credentials as well as the counterparty risk. It has happened to many Bitcoin users that their funds have disappeared after they logged into a third-party website.

●       Mobile Wallets

Mobile wallets work similarly to desktop wallets, but they run on smartphones and other personal devices. Several mobile wallets allow users to make rapid payments at physical stores via near-field communication (NFC) or scanning QR codes. It is usual for mobile wallets to be compatible with either android or iOS. Mycelium Wallet and Hive Android are two mobile wallets. Before using a Bitcoin exchange, do your homework, as there have been several instances of viruses masquerading as exchanges.