BITCOIN WALLET CLASSIFICATION

Bitcoin wallet: classification and features

The Bitcoin crypto currency mobility, safety and usage simplicity attracts more and more fans. And we can tell for sure that taking into account the existing development of digital technologies this process will continue. The reason for this might be a necessity to use it any time and place using any device like laptop, tablet or Smartphone.

To get clearer picture it is worth saying that Bitcoin cryptrocurrency is a set of virtual confidential keys, opening the access to Bitcoin addresses and enabling the feature of commercial transactions conducting. You will need Bitcoin wallet in order to use such virtual savings. Find below the existing detailed classification of Bitcoin wallets in order to get clear idea what kind of Bitcoin wallet will perfectly suit your needs in case of cryptocurrency usage.

Bitcoin wallets classification Bitcoin wallets are classified depending on their location. Now there are four main types of Bitcoin wallets: local; on-line; mobile; Hardware. Each type of bitcoin wallet has specific features taking into account the specific indices: wallet registration simplicity; usage simplicity; option of internet access; Security.

Local bitcoin wallets The local Bitcoin wallets or simply PC wallets are located at user PC. The file with keys is being stored at your PC as well, plus you can personally set all characteristics, which is extremely important as well. Some classifiers call such wallets «full set», which have such advantages as high level of security, the options of back-up files in order to save you from unpleasant situations. Besides this local bitcoin wallets end their blockchain at PC by constantly adding new ones at the same time. It means that you would need powerful PC with big amount of free space. Such wallet is connected to computer one way or another, so its usage is possible in home conditions only. Bitcoin Core is one among the best local Bitcoin wallets. This Bitcoin wallet has been created on the basis of Bitcoin itself by thus warranting its operation stability and security. The main advantages of this program are an option of keys encrypting with password and Russian localized version. Such type of wallet is used at cryptocurrency cloud mining.

Mobile Bitcoin wallets Mobile Bitcoin wallets are often called «part wallets» as they download all block from third party servers and don’t require its downloading to mobile device. Such software usage has its advantages and disadvantages. The advantages are the simplicity and the option of their usage at portable devices. Partial block loading didn’t manage to free such gadgets from huge mobile traffic, which is not so cheap now. Now there are various applications – Bitcoin wallets for both the most widespread mobile OS: Android and iOS. The most convenient ones are the following: Iphone – Fruitwallet; Android – Electrum. The advantages of mobile wallets before local ones are obvious if we don’t mention the matter of security which is significantly lower in comparison to the one of local wallets. The block-chain location at third party servers supposes information partial transfer to third party, meaning that third party can use this information at its own discretion.

Online Bitcoin wallets The similarity of on-line and mobile Bitcoin wallets lies at the fact of blockchains partial loading. If you are using such wallet the key file is located at specific server with internet connection. Due to the fact of addresses reproduction between all user’s devices one can get access to bitcoin wallet from any device which has internet connection. The drawback of such type of wallet is the same like the one of mobile wallets low security level meaning that the third party has access to secret keys. Such situation might cause various unpleasant consequences! GreenAddress online wallet is the most popular one among all other types of online wallets. The advantage of such wallet application is the fact that it has two multi signatures and serves as a guarantor of financial security during each transaction. The application has the feature of transaction immediate confirmation by thus lowering fraud risk practically to zero. The only GreenAddress drawback is its recency by thus making users cautious about its usage. In most cases it is not correct as the application is worth trusting it.

Bitcoin hardware wallets Bitcoin hardware wallets provide convenient access to Bitcoins by simultaneously providing high security level, as the keys are being stored in wallet memory only. In most cases the main element of such Bitcoin wallet is flash drive with micro scheme for secret keys storage and PC connection via USB slot. The most typical examples are Trezor, Keepkey, and Ledger Nano S.

«Bitcoin banks» Such applications as Coinbase and Xapo are often called “Bitcoin banks”. We recommend taking them into consideration due to extended features. The Coinbase is one of the most advanced applications related to crypto currency transactions.  Its main advantage is an additional storage space for secret keys. Now this wallet is a service provider for more than 2, 5 millions of customers in 28 countries of the world. Lot of international companies such as The New York Times and Bloomberg use this wallet advantages. This wallet enables the option of cryptocurrency sales and purchase. It has rather complex identification procedure during usual currency exchange to Bitcoins, but this is not exactly a drawback. Coinbase allows non-blockchain transactions conducting by thus enabling its immediate confirmation.

How to increase wallet security Your internet investments security meaning your Bitcoin wallet security is one of the milestones of its operation. There are three of the most efficient ways of secret file protection: Password encryption; Data back-up; «cold storage» (wallet offline usage). The information encryption allows security level significant increase, though it is always possible to break password with the help of specific software. The creation of several back-up copies and their storage in different locations will allow the security significant increase but only in case if we are talking about complete copies. The secret keys cold storage supposes that they are in offline device not in internet by thus making most money unavailable via Internet. This is also not very convenient! Anyway the security is the most important matter you have to take into account when selecting Bitcoin wallet. Some applications are slow about transactions conducting, some are fast but such factors are secondary. The security should be in first place!