Online vs. Offline, Desktop vs. Web...

[HCP]

Hi,

I am relatively new to the Bitcoin world (have been dipping my toes in the water for a week or so) and have a couple of things I'd like to get clarified, as I'd like to get a bit more "serious" about Bitcoin going forward.

Firstly, as I understand it, an 'online' wallet is essentially software (either desktop or web) that stores all the information about my bitcoins, whereas an offline wallet would be like a paper one, with all the info printed onto paper and stored (hopefully) somewhere secure. Is that correct?

Secondly, a 'desktop' wallet is software like bitcoin core that I run on my own hardware... and I have full control (and responsibility for maintaining security)... whereas a web wallet, I'm essentially letting someone else hold onto my coins, as they theoretically have access to my private keys etc?

In the case of web wallets... are any of them trustworthy?? Like Xapo looks nice and convenient and all, but there doesn't seem to be a way to control your keys... Blockchain.info seems to offer you all that information, but then, that means they still have access to my keys right??

Thanks in advance for your help/suggestions/information...

[Cloverdale]

Web wallets are not safe becase someone elses has access on your privatekeys. They can move the coins in your wallet anytime that they want.
Alternative Clients  https://bitcointalk.org/index.php?board=37.0
Best wallets?https://bitcointalk.org/index.php?topic=1529378.0

[sfinxster]

If you want a good web wallet, I suggest the coinbase wallet. I have a small amount in it, just incase I run into a place that accepts Bitcoin.

[relq]

I recommend blockchain and for me blockchain is the best web wallet and it's really safe and trustworthy, because i used blockchain wallet from 2 years ago and there is no problem/issue until now.

[achow101]

Hi,

I am relatively new to the Bitcoin world (have been dipping my toes in the water for a week or so) and have a couple of things I'd like to get clarified, as I'd like to get a bit more "serious" about Bitcoin going forward.

Firstly, as I understand it, an 'online' wallet is essentially software (either desktop or web) that stores all the information about my bitcoins, whereas an offline wallet would be like a paper one, with all the info printed onto paper and stored (hopefully) somewhere secure. Is that correct?

Typically people call the "online" wallet a hot wallet. Online wallet could also mean web wallet, so calling it a hot wallet avoids confusion. Offline wallets are not necessarily paper wallets, but can include hardware wallets and wallets on airgapped computers.

Secondly, a 'desktop' wallet is software like bitcoin core that I run on my own hardware... and I have full control (and responsibility for maintaining security)... whereas a web wallet, I'm essentially letting someone else hold onto my coins, as they theoretically have access to my private keys etc?

Yes. A desktop wallet is a local software you install on your computer. There are also hardware wallets which are physical hardware that contain the private keys. A web wallet is online and you can access them from anywhere.

In the case of web wallets... are any of them trustworthy?? Like Xapo looks nice and convenient and all, but there doesn't seem to be a way to control your keys... Blockchain.info seems to offer you all that information, but then, that means they still have access to my keys right??

Thanks in advance for your help/suggestions/information...

In general web wallets are not safe. You do not know when the service may suddenly close. You do not know if they are hacked (or scam) and steal your Bitcoin. You do not know whether their claim of not knowing your private keys is actually true.

I recommend that you don't use web wallets, especially blockchain.info because their service (customer support, security of their site, etc.) generally sucks.

[HCP]

Thanks for all the info guys. I really appreciate it.

Having done some more research, this whole Bitcoin thing gets quite complicated, quite quickly!

- A hardware wallet is probably not an option at this time due to lack of availability in my region and somewhat limited resources.
- I think a 'hot' wallet is an 'OK' temporary solution, as due to my limited resources, I don't currently have a large amount of BTC... so the risk is relatively small... for now.
- I will investigate the options available to me of the various desktop wallet solutions as longer term solutions.

Now I just need to figure out, how desktop wallets work...

[achow101]

Now I just need to figure out, how desktop wallets work...

Just download and install one that you like. Back it up, then you are good to go.

If you want the security of a full node, I recommend that you install either Bitcoin Core or Bitcoin Armory. Armory relies on Core. Both are full node wallets, but Bitcoin Core can be pruned so that it takes up less space. Syncing will still take a while as it still needs to download the whole blockchain. Armory cannot run if Bitcoin Core is pruned.

If you want a lightweight wallet that won't take ages to sync, I recommend that you use Electrum.