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BITCOIN EDUCATION

What types of Bitcoin wallets are there? How to choose a Bitcoin wallet?

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BEST BITCOIN WALLET

Bitcoin Wallets

The bitcoin wallet is one of the most actively developed applications in the Bitcoin ecosystem. There is fierce competition here, and there may be new wallets under development, but there are also several wallets from last year that is no longer actively maintained. Many wallets focus on specific platforms or specific uses, some are more suitable for beginners, while other wallets provide features for advanced users.

Choosing a wallet is very subjective and depends on the use and the user’s expertise. Therefore, it is impossible to recommend a specific wallet brand or item. However, we can classify Bitcoin wallets according to their platforms and functions, and provide some suggestions for all different types of wallets. Even better, moving money between Bitcoin wallets is easy, cheap, and fast, so it’s worth trying several wallets until you find a wallet that meets your needs.

According to the platform, bitcoin wallets can be classified as follows:

1. Desktop wallet :

The desktop wallet is the first type of bitcoin wallet created as a reference implementation, and many users run the desktop wallet to achieve its functionality, autonomy, and control. Running on general operating systems (such as Windows and macOS) has certain security risks because these platforms are often insecure and improperly configured.

  • Bitcoin Core:

It is a Bitcoin client that implements a full node, which forms the scaffold of the entire Bitcoin network. Bitcoin core has extremely high security, privacy, and stability. But it has fewer features and will take up a lot of disk and memory space.

  • Bitcoin Knots:

Many of Bitcoin’s nodes are a complete Bitcoin client and have established the backbone of the Bitcoin network. The client provides a high level of security, high privacy, and high standard stability. Clients contain more advanced features than Bitcoin Core, but these clients are not well tested. The client will take up a lot of disk space and computer memory.

  • Electrum:

The focus of the Electrum client is fast, simple, and takes up fewer resources. It uses a remote server to handle the most complicated part of the Bitcoin system, and you can also restore your wallet through a preset secret phrase.

  • GreenAddress:

GreenAddress is a user-friendly multi-signature wallet, which is accompanied by improved security and privacy. Your private key will never be on the server at any time, not even the encrypted private key. For security, you should always use two-factor authentication (2FA) and browser extensions or Android apps.

2. Mobile Wallet:

Mobile wallets are the most common type of Bitcoin wallets. Running on smartphone operating systems (such as Apple iOS and Android), these wallets are usually an excellent choice for new users. Many are designed for simplicity and ease of use, but there are also fully functional mobile wallets for power users.

  • In token:

As a professional digital asset wallet, imToken is safe and secure, simple, and easy to use, supports multi-chain and multi-currency management and exchange, so that blockchain technology can better integrate into your life.

  • Bitpie:

Bitpie (bitpie.com) is a new generation of blockchain asset comprehensive service platform developed by the Bither.net team. Based on HD wallet technology, multi-signature, and on-chain transactions, it allows you to use digital currency easily and safely. You can easily send and receive bitcoins it and conduct various transactions conveniently.

  • Bixin Wallet:

Bixin is a one-stop blockchain wallet, social networking, trading, and mining platform. It is a Bitcoin wallet. It now supports the Lightning Network, supports dozens of digital currencies, and guards asset security at all times.

3. Online wallet :

The web wallet is accessed through a web browser and stores the user’s wallet on a server owned by a third party. This is similar to webmail because it relies entirely on third-party servers. Some of these services operate using client-side code running in the user’s browser, which can control the bitcoin key in the user’s hand. However, most people need to compromise between safety and convenience. It is not appropriate to store large amounts of Bitcoin on third-party systems.

Web wallets store your private keys online, and they are encrypted with user-defined passwords. The security of the web wallet is poor, but it can be obtained from any networked device.

  • Green Address:

Is a multi-signature bitcoin wallet, which can be used on the web, desktop, Android, and iOS.

It Can be compatible with hardware wallets etc. “Multi-signature” means that the website requires you to manually confirm the transfer of Bitcoin, which greatly improves security.

  • Mycelium:

Mycelium is the most popular Bitcoin wallet for the Android platform. It is very convenient to use it to send or receive payment requests. Backup is also very convenient because Mycelium provides detailed instructions for installation and backup.

  • Bread wallet:

Bread wallet, a great Bitcoin wallet for the iPhone platform, has recently released its Android wallet. It provides users with the management of private keys, a simple user interaction interface, and password support.

  • Edge:

Edge is an easy-to-use Bitcoin wallet-available for iPhone and Android platforms. Its familiar login function makes the use of its App application as easy to be accepted by novices as a breeze.

It can automatically create a backup, so you don’t need to worry about the technical troubles of manually backing up your wallet.

  • Green Bits:

It is the Android version of Green Address’s wallet. It is a multi-signature Bitcoin wallet and supports hardware wallets like TREZOR and Ledger.

4. Hardware wallet :

These are devices that independently operate Bitcoin wallets on dedicated hardware. They operate via USB and desktop web browsers or Near Field Communication (NFC) on mobile devices. All Bitcoin-related operations are performed through dedicated hardware. These wallets are considered very secure and suitable for storing large amounts of Bitcoin.

  • Digital Bit box:

Digital Bit box is a minimalist hardware wallet from Switzerland that emphasizes security and privacy. Its features include completely offline and simplified backup, plausible deniability, multi-signature support, native desktop applications, mobile applications that can be used for verification, and two-factor authentication (2FA).

  • Keep Key:

Keep Key is a physical wallet that makes Bitcoin security easy. When you entrust Keep Key to manage your currency, you must review and approve each bitcoin transaction through the OLED display, and press the confirm button.

  • Ledger Nano S:

Ledger Nano S is a secure Bitcoin hardware wallet. It connects to the computer via USB and has an embedded OLED display to double verify every transaction.

  • Trezor:

TREZOR is a hardware wallet, which has high security without sacrificing convenience. Unlike cold storage, TREZOR can realize transactions when connected to an online device. This means that it is safe to use Bitcoin even when using an insecure computer.

5. Paper wallet

The key that controls Bitcoin can also be printed for long-term storage. Even though other materials (wood, metal, etc.) can be used, these are also called paper wallets. Paper wallets provide a low-tech but highly secure method for long-term storage of bitcoins. Offline storage is also often referred to as cold storage.

Another way to classify Bitcoin wallets is through their degree of autonomy and how they interact with the Bitcoin network:

6. Full node client :

A full client or “full node” is a client that stores the entire history of Bitcoin transactions (every transaction per user), manages the user’s wallet, and can directly initiate transactions on the Bitcoin network. The full node handles all aspects of the protocol and can independently verify the entire blockchain and any transactions. The full-node client consumes a lot of computer resources (for example, more than 125 GB of disk, 2 GB of RAM), but provides completely autonomous and independent transaction verification.

7. Lightweight client:

A lightweight client, also known as Simple Payment Verification (SPV) client, connects to the Bitcoin full node (mentioned earlier) for accessing Bitcoin transaction information, but stores the user wallet locally, and Create, verify and transmit transactions independently. The lightweight client interacts directly with the Bitcoin network without an intermediary.

8. Third-party API client:

A third-party API client is an API client that interacts with Bitcoin through a third-party system of an application programming interface (API), rather than directly connecting to the Bitcoin network. At this time, the wallet may be stored by the user or a third-party server, but all transactions need to go through a third party.

Combining these classifications, Bitcoin wallets can be divided into several groups. The three most common divisions are desktop full clients, mobile lightweight wallets, and online third-party wallets. The limits between various classes are frequently obscured, and numerous wallets run on different stages and can communicate with the organization in various manners.

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