What Are Bitcoin Wallets and Do You Need One?

January 28, 2020, by Maayan
If you want to store your Bitcoin, you’ll need an app or device to store it in. That’s where Bitcoin wallets come in handy.

So you wan to buy Bitcoin, have you considered where and how it is stored?

Digital currency is held in digital wallets. Since Bitcoin is on its own Blockchain the wallet of your choice must be able to hold bitcoin on a technical level. Keep in mind that Bitcoin wallets typically offer simpler transaction histories.

Virtually every wallet will make it easy for you to spend Bitcoin. However, some wallets are better suited to certain purposes. You have several different choices, which can be broken down into roughly five categories.

Note that once you sign up with Jubiter, you get an online wallet for free. It is also integrated with our exchange and payment card―meaning that it is the only Bitcoin wallet that you will ever need. Sign up to get your wallet.

Types of Wallets

Online wallets

Online wallets are typically connected to an exchange or other cryptocurrency services, and the exchange will generally hold Bitcoin on your behalf. As such, you’ll usually benefit from lower fees and faster transactions if you spend Bitcoin on the exchange in question.

Software wallets

Software wallets are designed for desktop computer usage. They allow you to manage your funds and private keys without the involvement of an exchange. Software wallets are mainly useful if you intend to spend your Bitcoin online or send it to other Bitcoin users.

Mobile wallets

Mobile wallets are targeted at smartphones and tablets. Often, these wallets make it easy for you to spend your Bitcoin in stores and checkout lines. They are sometimes compatible with or released alongside an existing online wallet or desktop wallet. Jubiter offers free wallets when you create an account.

Hardware wallets

Hardware wallets are small electronic devices manufactured by companies like Ledger and Trezor. They are designed for long-term secure storage of crypto: they allow you to store large amounts of Bitcoin and withdraw it as you need it, but they are not very useful for everyday spending.

Paper wallets

Paper wallets are the most basic type of wallet; they are simply pieces of paper with your address, private key, and a recovery (seed) phrase. Paper wallets are similar to hardware wallets but are much less durable. Furthermore, some paper wallet generators are fraudulent, so they should be used with care. Also, there is no way to restore your access in case you lose it and your funds will be lost forever.

How to Choose a Wallet

The easiest way to choose a wallet is simply to go with the default option: Bitcoin Core is Bitcoin’s standard wallet and software client, making it a go-to choice for many investors. Alternatively, you can use a comparison site to choose a wallet that meets your needs.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.