As with physical wallets, Bitcoin wallets come in a range of styles, each offering a tradeoff between convenient access and security against theft.
Mobile
Mobile wallets, like WazirX multi-cryptocurrency wallet and Exodus bitcoin wallet are those that run as apps on phones, tablets and other mobile devices.
Web
Web-based wallets, like Guarda Bitcoin Wallet, store your coins through an online third party. You can gain access to your coins and make transactions through any device that lets you connect to the internet. These web-based wallets are frequently associated with crypto exchanges that allow you to trade and store crypto all in one place.
While convenient, web-based wallets still hold many of the same risks as mobile wallets, namely that because they’re connected to the internet, they can be hacked. Though this is a rare occurrence and stolen funds have generally been replenished through insurance, you may not want to take this risk with your money. In addition, there have been times when exchanges have shut down, and people lost the coins in their web wallets.
Desktop
Desktop wallets, like Guarda and Exodus, are programs you can download onto a computer to store coins on your hard drive. This adds an extra layer of security versus web and mobile apps because you aren’t relying on third-party services to hold your coins. Still, hacks are possible because your computer is connected to the internet.
Hardware
Hardware wallets are physical devices, like a USB drive, that are not connected to the web. These include Ledger Nano X Bitcoin Wallet and Trezor Model T Bitcoin Wallet available in India. To make transactions, you first need to connect the hardware wallet to the internet, either through the wallet itself or through another device with internet connectivity. There is typically another password involved to make the connection, which increases security but also raises the risk you may lock yourself out of your crypto if you lose the password.
Hardware-based crypto wallets are also known as cold storage or cold wallets. (Wallets connected to the internet, in contrast, are called “hot wallets.”)
Paper Wallets
In a paper wallet, you print off your key, typically a QR code, on a paper document. This makes it impossible for a hacker to access and steal the password online, but then you need to protect the physical document.