Bitcoin wallet is a device, program or site that contains private keys for your btc and provides an opportunity to interact with the Bitcoin network (make transactions transactions).
There are several types of bitcoin wallets:
Hardware wallets are a type of cold storage. These devices generate the keys for your bitcoin wallet on the fly while you’re making the transaction.
Hardware wallets are relatively safe from computer virusus, malware and hackers as they generate they private keys on the device iteself. So as the private keys are generated offline, they’re harder to be hacked.
Hardware wallets are a good choice if you’re serious about security and convenient, reliable Bitcoin storage.
Software wallets require the user to download a software on their laptop mobile or any other device. Usually software clients are available for multiple devices, especially for both mobile and desktop versions.
Such wallets require the users to download the complete blockchain. They are relatively easy to use too and safer than online wallets. But they can be hacked if someone gains access to the computer or mobile device they’re stored in. Also, if the data or device itself is lost, the wallet and thus all cryptocurrency you have is gone too. Some wallets provide an option for backup too to fix the issue of data loss or device loss. They are convenient to store a small amount of crypto currency. Using them you can easily make transactions.
Online wallets are also called web wallets, registered online, without installing applications or programs. They come under the category of hot wallets. They’re easies to use as they can be accessed from any device that’s connected to the internet. Security of such wallets is low, because you trust your funds to a side resource.
It’s possible to print out your public and private keys and store them on a paper. Paper wallets are a type of Cold Storage method, as it’s an offline method of storing your cryptocurrency.
As it’s obvious, paper wallets are more secure than online or software wallets, as you have the the private and public keys printed with you physically on a piece of paper.
Mobile wallet works as an application on a smartphone, the wallet stores private keys for your bitcoins-addresses and gives you the opportunity tomake transactions using your phone.