Can I get a new BTC wallet?

Bitcoin (BTC) is a digital currency. As Bitcoins don’t exist in any physical shape or form, they can’t technically be stored anywhere. Instead, it’s the private keys — which are used to access your public Bitcoin address and transaction signatures — that need to be securely stored. A combination of the recipient’s public key and your private key is what makes a Bitcoin transaction possible.

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There are several different forms of Bitcoin wallets that cater to different requirements and vary in terms of security, convenience, accessibility and so on..

Types of wallets

Paper

A paper wallet is essentially a document that contains a public address for receiving Bitcoin and a private key, which allows you to spend or transfer Bitcoin stored in that address. Paper wallets are often printed in the form of QR-codes so that you can quickly scan them and add the keys to a software wallet to make a transaction. A paper wallet can be generated using services like BitAddress or Bitcoinpaperwallet, which allow users to create a random Bitcoin address with its own private key. The generated keys can then be printed, with some services offering a tamper-resistant design or even an option of ordering holographic labels.

Physical Bitcoin

Physical Bitcoin is usually preloaded with a fixed amount of BTC, and the intention is that its value cannot be spent as long as the private key remains hidden. This is usually achieved by using a tamper-evident seal.

The first of its kind, Bitbill, was shaped like a credit card, but most alternatives that followed were shaped like a round medal. Mike Cadwell, a cryptocurrency enthusiast nicknamed “Casascius,” created the first of the popular Casascius physical Bitcoins in 2011. Private keys were hidden under a peelable hologram when removed, it left a tamper-evident mark. When redeemed, the coin lost its digital worth. Since then, there have been several new coin manufacturers.

Mobile

For those actively using Bitcoin on a daily basis, paying for goods in shops or trading them face-to-face, a mobile BTC wallet is an essential tool. It runs as an app on your smartphone, storing your private keys, and allowing you to pay for things directly from your phone. Moreover, some apps enable users to use their smartphones’ near-field communication feature, which means they can simply tap their phone against the terminal without having to provide any information at all.

Any full Bitcoin client requires access to the entire blockchain ledger, which is constantly growing and requires several gigabytes of storage. For these reasons, mobile wallets take advantage of simplified payment verification technology. They only work with small subsets of the blockchain, relying on trusted nodes in the Bitcoin network to ensure that they have the correct information.

Web

Web wallets store your private keys on a server, which is constantly online and controlled by a third party. Different services offer different features, some of which can link to mobile and desktop wallets and replicate your addresses across the devices you own.

Much like mobile wallets, e-wallets enable their users to access their funds on-the-go from any device connected to the internet. If not properly protected, the organizations running the website might gain access to your private keys, thus gaining total control of your funds. Moreover, some e-wallets operate on exchanges, and there have been instances of exchanges shutting down and making off with their users’ funds.

Desktop

Desktop wallets are downloaded and installed onto your computer, storing your private keys on your hard drive. By definition, they are more secure than online and mobile wallets, as they don’t rely on third parties for their data and are harder to steal. They are still connected to the internet, which makes them inherently less secure. However, desktop wallets are a great solution for those who trade small amounts of Bitcoin from their computers.

There is a variety of different options for desktop wallets that cater to different needs. Some focus on security, some on anonymity, and so on.

Hardware

A hardware wallet is a rather unique type of Bitcoin wallet that stores the user’s private keys in a secure hardware device. It is the most secure way of storing any amount of Bitcoin. There have been no verifiable incidents of money being stolen from a hardware wallet. Unlike paper wallets, which must be imported to the software at some point, hardware wallets can be used securely and interactively. Moreover, they are immune to computer viruses, the funds stored cannot be transferred out of the device in plaintext, and in most instances, their software is open source.

Bank

Rainer Michael Preiss, an executive director at Taurus Wealth Advisors, has recently stated that all large U.S. banks are probably afraid of blockchain, Bitcoin and other cryptocurrencies. He has also mentioned that, given the uncertainty from banking’s lack of transparency, cryptocurrencies can present investors with a viable alternative. Indeed, many banks do not accept Bitcoin as a currency; some of them even refuse to manage funds obtained through operations with cryptocurrencies.

Bitcoin wallets and security

Possible problems

• Catching malware. Malicious software can scan your hard drive and find your private keys. Seconds later, all your Bitcoins can disappear.
• A trojan can encrypt all the files on your hard drive. Afterward, it might find all the links to your wallets, then realize how much money you own and demand that exact amount of Bitcoins to decrypt your hard drive.
• A digital exchange can make off with your money.
• You can lose your laptop or your phone with your wallets installed on them.

Pieces of advice

• Avoid using any kind of wallet that requires an internet connection; use cold storage options instead.
• Always be cautious and double-check everything. For instance, you could receive an email that looks like it’s from BlockWallet, but it is actually from BlockWalet. If you authorize it, your Bitcoins could disappear immediately.