Bitcoin is a special currency used by millions online, with a price that just surpassed 1000 USD per coin! Unfortunately, these coins are susceptible to theft depending on which method of storage is employed. If you plan on using bitcoin and want a nice and secure place to store your bitcoins, this guide is for you.
The most convenient and cheapest way to store bitcoins safely, the paper wallet is a piece of paper which holds the private key of the bitcoin wallet. The wallet's address is printed onto the piece of paper and is also contained in a QR code on the front of the paper wallet so you can easily use it in case you need to recieve or send some bitcoins to somebody quickly. For this wallet, we recommend using a laserjet printer instead of an inkjet as laserjets print out plastic and it is more durable that way. These types of wallets are especially susceptible to damages from humidity or water/fire, so we recommend keeping them in a cool spot away from sunlight in a plastic bag if you wish to use these for storage.
Generally the most clunky and inconvenient wallet to use but also the safest, the hardware wallet ensures your bitcoins will be stored safely and securely. Some even employ offline methods of bitcoin transfer, although all transactions will eventually be broadcast to the main network. Because these wallets are so heavy on security and require lots of verification to use, we do not recommend using such wallets for daily transactions unless you have a computer with you at all times- most of these wallets use a USB connection, although there are some exceptions.
Web wallets are very easy to use although often not the most secure. Your private keys are hosted usually on a web server where the keys are kept as safe as possible, although breaches do often happen and keys can be stolen. We recommend only using web wallets for daily transactions and not keeping large amounts of bitcoin on them at any time as the website usually is not responsible for any thefts or damages caused by hacking or any other reason. Many of these wallets have iOS and Android apps as well, so you can use these for shopping and pretty much anywhere bitcoin is accepted. Just keep in mind this kind of wallet should not be used to hold large amounts of bitcoin and you should only put in what you need to use to minimize losses if the service is hacked.
As you can see, there are many types of wallets in the bitcoin world and each has its own strong point and weak point. With the listed types of wallets, we hope you can make the right choice and pick the wallet that works best for you.