Types of Crypto Wallets- Why Use Bitcoin Wallets?

Bitcoin wallets or e-wallets provide a place to store your digital currency. Being a virtual currency, people store Bitcoin in digital wallets. You can have several wallets for storing cryptocurrencies. Each digital wallet should have a unique password and address. And for safety purposes, don't share details like the password of your Bitcoin wallet with anybody. As for the wallet address, you can share it with people that want to send you Bitcoins. An e-wallet address comprises a string of letters and numbers that seem random.

People from various parts of the world use Bitcoin to buy and sell products. Others trade and invest in Bitcoin. A platform like Immediate Edge allows you to buy and sell Bitcoin with ease. If ready to start trading Bitcoin, visit the bitcoin equaliser to register and then start buying and selling this cryptocurrency. Once you've made some profit, you can transfer your coins to a safe Bitcoin wallet.

Types of Bitcoin Wallets 

Bitcoin users have three main types of wallets from which to choose. Each wallet type has specific uses and variations.

Here are the main crypto wallet types:

• Software: A software wallet can be mobile, online, or desktop. As the name suggests, this wallet is an online service or based on your mobile device or computer. A user can only access this wallet from the platform or device where they download it. And this enhances privacy and security. Mobile wallets are apps that users download and then install on their devices. Their storage could be smaller, but they are ideal for use on the go or when shopping. You can also use an online-based wallet. Online wallet is a cloud service accessible to any user with an internet connection. Like other software types, these wallets are susceptible to viruses and hacking.
• Hardware: As the name suggests, hardware wallets are physical drives. These can be external solid or hard state drives or even USB flash drives. Use hardware wallets if you want to enhance your cryptocurrencies' security and privacy by keeping them offline. These wallets are mainly for storing Bitcoins and not completing transactions. They are expensive but not easy to hack. Only ensure that you don't lose or damage your hardware wallet.
• Paper: This is special software generating and printing keys on regular paper. You can use this option to enhance security in an old-fashioned way. However, this option has a modern twist because you enter keys or scan codes when using a paper wallet.

Why Use Bitcoin Wallets? 

Now that you know the available types of crypto wallets, you want to know why you should use them.

Here are the main reasons to use Bitcoin wallets: 

• It's almost a must: Bitcoin is digital money. As such, it resides in the digital world, mostly in a digital wallet. Ideally, it helps to have a good crypto wallet to safely, privately, and securely keep your Bitcoin. Even when you use a Bitcoin exchange to make money, you still need a wallet for storing the money you don't need immediately.
• Privacy and Security: Crypto wallets should be secure and private. That's why you should not share your private keys or passwords with anybody else. You only share your wallet address when receiving Bitcoin. And the person sending you money doesn't have to know your name. And once you initiate a transaction, you can't stop or hack into it. A good Bitcoin wallet provides near-complete anonymity, no third parties, and improved security.
• Easy access and use: Digital wallets allow you to access and use your Bitcoin easily. Unlike fiat money, you don't need to go to a bank to access and use your funds. You use the wallet on your mobile device or computer to send and receive funds.

Bitcoin users have different types of digital wallets from what to choose. Using e-wallets enables you to access and use your funds with ease. Choose a wallet that caters to your needs to access and use your Bitcoin quickly.