Bitcoin wallets can be differentiated into two main forms. Yes, you can differentiate Bitcoin wallets in cold storage and hot storage options. What do I mean by cold and hot storage options? Let’s see:
Cold storage is comprised of the type of wallets that store the Bitcoins in physical forms and not in any cloud or online based storage. The cold storage can be a hardware device or a piece of paper which is not connected to the internet. The main benefit of cold storage is its security. The online wallets can become vulnerable to the hackers due to various reasons and it can make you a loser. But with a hardware wallet or paper wallet, this situation will never arise since no one except you will be able to access the wallet. On the downside, if you ever lose your hardware device or the paper wallet then you will permanently lose your bitcoins too since there is no other way to access them.
Types of cold wallets are:
- Hardware wallets
- Paper wallets
The hot storage or hot wallets are opposite to that of the cold wallets. These wallets are mainly online or web-based. Though it is true that they do not provide the security of the cold wallets but they are tangible. You will not have to fear about losing the wallet as you will be able to access them easily.
Types of hot wallets:
- Software wallets
- Web Wallets
Well, that’s all to the type of Bitcoin wallets. Choose the one that suits you most and get started.