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Bitcoin Wallets for Beginners

Bitcoin is far from a traditional currency, so the approach to it should be different as well. This is also why you need a Bitcoin wallet: since Bitcoin is not a physical thing, it can’t be stored just anywhere. There are several types of Bitcoin wallets, varying in terms of safety and security, convenience, accessibility etc.

Since Bitcoins can be seen as a way to store your money online, Bitcoin wallets and security must go hand in hand.

Wallet types:

Online (“hot”) wallets, where the private key is stored online or on devices connected to the internet – e.g., on exchanges or other websites, computers, tablets, or smartphones.

Offline (“cold”) wallets, where the private key is stored on paper or offline hardware like a password-protected USB, or simply in one’s brain (when you memorize a special phrase to access your funds).

Online, or “hot”, wallets are less secure due to the threat of hacking. Website wallets are especially vulnerable as you must reveal your private key to a third party. But hot wallets are more convenient for daily use.

It’s thus recommended to use both types of wallets – hot wallets to hold small amounts of bitcoin for daily transactions, and cold, or offline, wallets for storing larger sums. In any case, you can have as many wallets as you want.

To learn how to create a Bitcoin wallet, you can follow our guide. Our explanations of Bitcoin wallets for beginners are sure to help you take your first step into using the cryptocurrency.

Read more how to choose a Bitcoin wallet here.

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