Bitcoin Wallets

Trezor

What is a Bitcoin Wallet?

Like for any other money, you need a wallet – an online wallet(a piece of software that you keep on your device used to store your public and private keys). Most wallets let you send and receive Bitcoin. There are several options online and you can also store it in a physical device – an USB stick which is even safer. Make sure to check out if the wallet supports your country.

8 Main Types of Wallets:

# Exchanges:

Least secure, because they are managing your private keys for you.

# Browser wallets:

Wallets generated on your internet browser – not so secure, use only for small amounts of money

# Mobile wallets:

Wallets for your phone – not so secure, use only for small amounts of money

# Core clients:

This is the main software written by the Bitcoin developers(this is the main software written by the Bitcoin developers(Bitcoin QT). This wallet has an entire record of the whole ledger(requires storage/bandwidth) of the blockchain. It can operate as a node on the network(contributes to the network). Make sure to constantly back it up(after every new transaction) and encrypt it. It can take days to sync though. You need a clean, virus free or dedicated computer. This is considered to be the most secure software wallet.

# Lightweight clients:

They have only a partial record of the ledger of the blockchain and store your private keys locally on your computer. It relies on communicating with full nodes(core clients). Pros: ease of use, more features, deterministic seeds(12 or 24 words) don`t need constant backup, it does not require a lot of bandwidth/space. example: blockchain.info wallet. Some cons: you need to trust full nodes,  it relies on communication with a server(server downtimes), it does not contribute to the network and usually has a smaller team of developers than the core client, not offered by every altcoin.

# Brain wallets:

You can take any phrase or word and generate it into a Bitcoin wallet with a public and private key pair. These are considered secure. Deterministic wallets: they will be generated based on 12 or 24 words(randomly generated). Make sure to generate those phrases randomly by a computer.

# Paper wallets:

Wallets that you can generate offline on a piece of paper and just be able to send your Bitcoins to the public address. They are unhackable if done right(the set up takes some time), completely anonymous, can be physically traded. Use for long term holdings of coins not for day to day transactions. On the other hand, they can only be used once if spend. The coins are lost if the paper gets damaged and the private keys could be exposed while sweeping the wallet.

# Hardware devices:

TIPThey isolate your private keys from the internet, most secure and convenient choice.

Some great interactive cold storage wallets: Ledger, Trezor(can be restored with a seed: 24 words in case of loss – just buy a new one and restore it, you can set up multiple accounts and passwords, generates a new address for each transaction to protect your privacy, so it protects you from viruses, theft, loss, extortion, and surveillance), Case, Cool Wallet or you can use a dedicated offline computer.

3 Types of security levels for wallets:

HOT: Private keys are managed for you by a 3rd party

WARM: you manage your own private keys

COLD: you keep your private keys offline -most secure choice: paper or hardware wallets

Tip:

Keep the majority of your coins offline. Diversify between different exchanges – don`t keep a lot of coins in one exchange.

Here are some commonly used wallets:

Coinbase Easy to get started. Can be funded with Credit card or bank account. (follow the link and get 10$ for free once you deposited 100$)

www.blockchain.com

www.wallet.mycelium.com

www.exodus.io

Highest Security – Hardware Wallets:

With these hardware wallets only you have access to your private keys! This is key for the security of your money.

Ledger:

Ledger: Safe wallet for your coins. Different products available.

Ledger Nano-S:

Bitcoin, Ethereum, Ethereum Classic, Litecoin, Dogecoin, Zcash(z-addresses are not supported). Dash, Stratis.

Soon to come: Ripple, Monero

Ledger Hardware Bitcoin Wallet

www.ledgerwallet.com This is a physical hardware wallet – a USB stick – very safe

 

Trezor:

Trezor is another safe hardware wallet – you can store these coins:

Bitcoin, Testnet, Namecoin, Litecoin, Dogecoin, Dash, Zcash, Zcash Testnet, Ethereum and Ethereum Classic

Trezor Hardware Bitcoin Wallet