Types of wallets. Which one's the best?

[crown_translator]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

[AdolfinWolf]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

Webwallets are arguably the worst ones. -- You are dependant on their service & sites, and with most of them it is really hard to access your private keys ( blockchain.info), plus you're missing alot of functionality, RBF/ CPFP / etc.

Desktop wallets such as bitcoin core and Electrum both provide full security ( in terms of access to keys etc, ) and full functionality. Although if your PC is ratted/infected, i wouldn't be so sure how safe they would be in that case. I believe that there shouldn't really be a problem if you have strong encryption, but don't quote me on that..

External wallets ( Trezor/Ledger nano S),  people usually say these are the safest, and the best, due to them  being encrypted and very movable ( like a USB-stick, you can take them anywhere you go!). I'm not sure if Nano/Trezor offer the same functionality as bitcoin core / electrum though.

[castiel0504]

At the moment i think security wise, For Android, Samurai is awesome, you can get it here: https://play.google.com/store/apps/details?id=com.samourai.wallet&hl=en

Other then this one, you can get Ledger and Trezor. But you have to wait for them to be in stock(dont buy them from reselers).

[Alone055]

Basically, there are two kinds of wallet:
1. Hot Wallet
2. Cold Wallet

1. Hot Wallet:
                    A Hot Wallet is a wallet that is connected to the internet, and is used for day-to-day transactions. They are mostly used to store smaller amounts of Bitcoin as they are not too secure. Web wallets, Mobile Wallets, and Desktop Wallets are Hot Wallets as they are connected to internet and are used for usual transactions.

2. Cold Wallet:
                     A Cold Wallet is a wallet that has no internet access, and is used for storing Bitcoins for long-term. They are more secure as they need no internet access and are safe from phishing or any other kind of attacks. Hardware Wallets, Paper Wallets and sometimes Desktop Wallets (if not connected to internet) are used as Cold Wallets, to store Bitcoins for a longer time.

Now, each one of them has their own advantages and disadvantages. Like, Web Wallets has the disadvantage of Phishing or hacking attacks, and they often don't give you access to your Private Keys. Sometimes a wallet even can be a scam and run away with the Bitcoins of people. Advantage of Web Wallets is that they are user-friendly and fast too.
On the other side, Desktop wallets has no such disadvantages, but there are fears of keyloggers and other similar attacks. Their advantage is that they are safe from Internet attacks (Phishing, hacking), and the private keys are stored in your PC.
Paper and Hardware wallets can be lost, in such a situation, you will lose all your funds store in any of them, but they have the advantage that they are totally safe from attacks of any kind, meaning you are totally safe as long as you have them to yourself.

That is a small explanation of wallets. I hope I made them quite clear for you.

[aardvark15]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

I personally think a paper wallet is the safest as long as you generate it offline and securely. Next safest is a hardware wallet (such as Leger Nano or Trevor) which also requires that you set it up securely and protect your pass phrase.

The least secure wallets are the ones where you don’t control the private keys yourself. I personally have some coins on paper wallets, some on a Ledger Nano S, and a little on an exchange.

[hase0278]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

If we are talking about security, trezor, nano ledger s, and the likes are the best wallet to use if it is for holding since it is  very securebut they can't be classified as the most convenient wallet to use when one is doing transactions daily in his wallet. If it is for daily usage, I recommend desktop wallets as they have more security than web wallet and also security wise althiugh they are less secure than hardware wallets.

[Thirdspace]

As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

you can read some more thread [General] Bitcoin Wallets - Which, what, why? (it seems you've known this in your other thread)
or if you prefer wiki style explanations, I posted in another thread awhile ago (quoted below)
if you still have questions or unclear on some info on these reading materials
then ask it here... we are a friendly community for newbies wanting to learn (but not for merit whiners who care only about ranking up for signature campaign)

checkout Bitcoin Wiki for your daily needs of bitcoin information
https://en.bitcoin.it/wiki/Paper_wallet
https://en.bitcoin.it/wiki/Hardware_wallet
https://en.bitcoin.it/wiki/Browser-based_wallet
https://en.bitcoin.it/wiki/Wallet

[Dudeperfect]

There are around 10+ ways to store Bitcoins but I believe that storing funds in the offline manner is the best option in terms of security but one should always keep in mind that he is the sole person responsible for his actions. I am fan of paper wallet and Trezor wallet when it comes to the offline holding.

* 12 Ways To Store Bitcoins Review - Hardware, Desktop, Mobile, Online & Paper Wallets?

This article might help you to understand the 12 ways to hold Bitcoins and take your decision.

[HabBear]

I don't see this link (below) yet, it's an abbreviated list of wallets segmented by the way you want to access it. It's a beginner's resource, but a good starting point for anybody. Please note that it's not an exhaustive list and it's focused on Bitcoin wallets.


Things to consider as you go through your search: Bitcoin - Choose Your Wallet

[tbalazs]

Buy physical wallet and also have online wallet, dont store everything at one place

[crown_translator]

As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

you can read some more thread [General] Bitcoin Wallets - Which, what, why? (it seems you've known this in your other thread)
or if you prefer wiki style explanations, I posted in another thread awhile ago (quoted below)
if you still have questions or unclear on some info on these reading materials
then ask it here... we are a friendly community for newbies wanting to learn (but not for merit whiners who care only about ranking up for signature campaign)

checkout Bitcoin Wiki for your daily needs of bitcoin information
https://en.bitcoin.it/wiki/Paper_wallet
https://en.bitcoin.it/wiki/Hardware_wallet
https://en.bitcoin.it/wiki/Browser-based_wallet
https://en.bitcoin.it/wiki/Wallet

Wow! Thank you so much. This info is very useful. I've already read the first article and now I'm going to read the other suggested articles.

[xen14]

TREZOR

[crown_translator]

I don't see this link (below) yet, it's an abbreviated list of wallets segmented by the way you want to access it. It's a beginner's resource, but a good starting point for anybody. Please note that it's not an exhaustive list and it's focused on Bitcoin wallets.


Things to consider as you go through your search: Bitcoin - Choose Your Wallet

Thank you mate! I didn't know there were so many options. I'll definitely check them out.

[crown_translator]

There are around 10+ ways to store Bitcoins but I believe that storing funds in the offline manner is the best option in terms of security but one should always keep in mind that he is the sole person responsible for his actions. I am fan of paper wallet and Trezor wallet when it comes to the offline holding.

* 12 Ways To Store Bitcoins Review - Hardware, Desktop, Mobile, Online & Paper Wallets?

This article might help you to understand the 12 ways to hold Bitcoins and take your decision.

This article is great and the website contains some very useful information. Thanks a lot! 

[crown_translator]

Basically, there are two kinds of wallet:
1. Hot Wallet
2. Cold Wallet

1. Hot Wallet:
                    A Hot Wallet is a wallet that is connected to the internet, and is used for day-to-day transactions. They are mostly used to store smaller amounts of Bitcoin as they are not too secure. Web wallets, Mobile Wallets, and Desktop Wallets are Hot Wallets as they are connected to internet and are used for usual transactions.

2. Cold Wallet:
                     A Cold Wallet is a wallet that has no internet access, and is used for storing Bitcoins for long-term. They are more secure as they need no internet access and are safe from phishing or any other kind of attacks. Hardware Wallets, Paper Wallets and sometimes Desktop Wallets (if not connected to internet) are used as Cold Wallets, to store Bitcoins for a longer time.

Now, each one of them has their own advantages and disadvantages. Like, Web Wallets has the disadvantage of Phishing or hacking attacks, and they often don't give you access to your Private Keys. Sometimes a wallet even can be a scam and run away with the Bitcoins of people. Advantage of Web Wallets is that they are user-friendly and fast too.
On the other side, Desktop wallets has no such disadvantages, but there are fears of keyloggers and other similar attacks. Their advantage is that they are safe from Internet attacks (Phishing, hacking), and the private keys are stored in your PC.
Paper and Hardware wallets can be lost, in such a situation, you will lose all your funds store in any of them, but they have the advantage that they are totally safe from attacks of any kind, meaning you are totally safe as long as you have them to yourself.

That is a small explanation of wallets. I hope I made them quite clear for you.

I didn't know about the hot and cold distinction. You've made the explanation very clear mate. Thank you!

[crown_translator]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

Webwallets are arguably the worst ones. -- You are dependant on their service & sites, and with most of them it is really hard to access your private keys ( blockchain.info), plus you're missing alot of functionality, RBF/ CPFP / etc.

Desktop wallets such as bitcoin core and Electrum both provide full security ( in terms of access to keys etc, ) and full functionality. Although if your PC is ratted/infected, i wouldn't be so sure how safe they would be in that case. I believe that there shouldn't really be a problem if you have strong encryption, but don't quote me on that..

External wallets ( Trezor/Ledger nano S),  people usually say these are the safest, and the best, due to them  being encrypted and very movable ( like a USB-stick, you can take them anywhere you go!). I'm not sure if Nano/Trezor offer the same functionality as bitcoin core / electrum though.

A very good point. Are there any basic steps or best practices to check whether my PC is infected or not?

[crown_translator]

At the moment i think security wise, For Android, Samurai is awesome, you can get it here: https://play.google.com/store/apps/details?id=com.samourai.wallet&hl=en

Other then this one, you can get Ledger and Trezor. But you have to wait for them to be in stock(dont buy them from reselers).

Ok, I'll try to get on the waiting list to get one of those then. Thank you! 

[crown_translator]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

I personally think a paper wallet is the safest as long as you generate it offline and securely. Next safest is a hardware wallet (such as Leger Nano or Trevor) which also requires that you set it up securely and protect your pass phrase.

The least secure wallets are the ones where you don’t control the private keys yourself. I personally have some coins on paper wallets, some on a Ledger Nano S, and a little on an exchange.

Yes, you're right. It's better to diversify and have different amounts in several wallets instead of putting all your eggs in one basket. A very good advice. I'll definitely follow it. 

[crown_translator]

Hello guys.

I've been reading a lot about crypto these days and there is one thing that always pops up: wallet security. As far as I know, there three types of wallet: desktop wallet, webwallet and external wallet (Trezor and the like). What are the differences between them? Which one is better security-wise?

Thanks! 

If we are talking about security, trezor, nano ledger s, and the likes are the best wallet to use if it is for holding since it is  very securebut they can't be classified as the most convenient wallet to use when one is doing transactions daily in his wallet. If it is for daily usage, I recommend desktop wallets as they have more security than web wallet and also security wise althiugh they are less secure than hardware wallets.

Currently I'm not very active. I'm just trying to learn enough before I start actually working with cryto, so I don't have  lot of daily transactions. Should a beginner like me start with trezor / nano ledger or just get a desktop wallet?

[SOFAEMONEY]

wallets can be divided into five types

1) Web Wallet-
Online wallets are typically cryptocurrency wallets that you access via your web browser.online wallets are incredibly attractive to hackers but this is the fastest way to complete transactions.

2)Mobile Wallet-
these wallets are More practical and easier to use than other wallets.there are QR code scanning features.but your Your phone is open to malware, keyloggers, and viruses.

3)Desktop Wallet-
desktop wallets is are more secure than web wallets and mobile wallets. but If connected to the internet there are security and privacy caveats and you should back it up. 

4)Hardware Wallet-
Hardware wallets are less user-friendly wallets but great for storing large amounts of cryptocurrency.  it’s the most secure way to store crypto long-term. There is a tronger security than all other wallets.

5)Paper Wallet-
Before hardware wallets, paper wallets were the defacto standard for cold storage of cryptocurrencies.
but More effort required to move cryptocurrencies around and More technical understand required.