Wallets
A beginner's guide to Bitcoin wallets
If you're new to the world of Bitcoin, one of the first things you'll need to understand is the concept of a bitcoin wallet. In this article, we'll take a closer look at the different types of wallets available, how they work, and why it's important to use a hierarchical deterministic (HD) wallet for secure storage of your bitcoin.
Seed Phrase
The starting point of every modern Bitcoin wallet is a seed phrase of 12 or 24 words, also known as mnemonic.
If you have your seed phrase, you can restore your wallet on pretty much any device.
For more info on how to restore a wallet, see the Restoring a Wallet article.
Types of Bitcoin Wallets
There are two main types of bitcoin wallets: hot wallets and cold wallets.
Hot Wallets
Hot wallets are software wallets that are connected to the internet and can be accessed from any device with an internet connection. They are convenient and easy to use, but they also come with some risks. Because they are connected to the internet, hot wallets are more vulnerable to hacking and other security threats.
Examples of hot wallets include:
- Blue Wallet - works on iOS and Android
- Nunchuk Wallet - works on iOS and Android
- Sparrow Wallet - works on Windows, Mac and Linux
- Wassabi Wallet - works on Windows, Mac and Linux
- Samourai Wallet - works on Android only
Cold Wallets
Cold wallets, on the other hand, are physical devices that store your bitcoin offline. They are more secure than hot wallets because they are not connected to the internet and are less vulnerable to hacking. However, they can be more inconvenient to use and may require more effort to set up.
Examples of cold wallets include:
Summary
In conclusion, choosing the right type of bitcoin wallet depends on your individual needs and preferences. If you want a convenient and user-friendly wallet that is connected to the internet, a hot wallet may be the best choice. However, if you prioritize security and privacy, a cold wallet may be a better option.