Review How To Choose A Bitcoin Wallet

Discussion in 'Crypto Learning Center (Library)' started by Precious_ngexchanger, Oct 20, 2018.

  1. As a Bitcoin user and investor, the natural dilemma to have is where to store the money, just like the hard currency, Bitcoin also needs a to be stored to protect it from being stolen or corrupted, therefore, choosing the right Bitcoin Wallet is a critical step to be taken that must be done with utmost consideration and not taken lightly.

    In choosing a wallet, there are some standard knowledge that you must possess, firstly, it is essential to know what a Bitcoin wallet truly means; it is simply a program that helps a Bitcoin user to send and receive Bitcoin in a user-friendly manner. Also, it is important to understand the two major types of wallet that there is; the Online wallet also known as “hot” and the Offline wallet also known as “cold”, they vary in characteristics and the reasons for choosing a wallet should determine which of the above will be chosen.

    Online wallets are more suitable for daily use but aren’t very secure, while offline wallets are less convenient for frequent use yet are more secure.

    The online wallet – which runs an app on an android phone or a program on a computer – should be used based on the following conditions:

    1. If the individual is not so concerned about privacy;

    2. If the individual is willing to involve another user (sharing a wallet with others is cost-effective but risky);

    3. If the individual wants easy access to the wallet (through the android phone or the computer);

    4. If the individual trusts another party with the security of the wallet;

    5. If the individual only needs to store a handful of Bitcoins which won’t be too painful to lose.

    The offline wallet, e.g. Hardware or paper bitcoin wallet is advisable if:

    1. There is a need to store a large amount of bitcoin;

    2. There is no need for easy access;

    3. Security is top priority for such an individual;

    4. The individual is willing to pay for the hardware;

    5. The individual will rather safeguard the money him/herself than trust it’s security with another party;

    6. Privacy is very essential.

    It is important to note than an individual can decide to make use of both wallets; the online for purchase of goods and services and the offline one for savings.

    Other characteristics to consider when selecting a wallet are;

    1. Security is of utmost importance.

    Having the knowledge that the wallet is safeguarded is of great essence and should not be overlooked. If it’s an online wallet, it is preferable that the website has HTTPS as this offers a more secure protocol than HTTP. One must also watch out for strong logins, i.e. usernames and passwords and two-factor authentication (2FA). These features are crucial in the security aspect of an online wallet.

    2. Multisignature (Multisig)

    A multisig option is the next thing to watch out for after security, it is important in securing the bitcoins against theft and attackers, it simply means the requirement of more than one key to authorize a bitcoin transaction (this is usually in cases of multiple parties using the wallet).

    3. User Experience

    The wallet should not be a confusing one, it should be simple and not need too much experience to get started and use especially in case of an online wallet which only requires an app for the android phone and an installed software for the computer machine, although, in case of an offline wallet, more technical user interface may be involved
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  3. Djlakhany

    Djlakhany Active

    We should do proper research before we go about selecting the right wallet. This is not too easy and we shouldn’t even take it easy. There are fast growing options too all around apart from Cryptos. I would say check this Online Payment Providers Are Going Mainstream, as it just highlights that.