as the title says , I would like to know What's the difference between Offline & Online wallets ?
and can you list some of each ?
Thank you guys .
There are 3 different kinds of wallets:
- wallets that are running on a website. (online)
- wallets that run on your computer (offline)
- wallets that are not connected to the internet or even inside a computer, public and private key on paper. (cold storage)
With bitcoin, data is money. So you have to pick the right way to protect your data.
You can see an overview of wallets here:
https://bitcoin.org/en/choose-your-walletThis is my general experience:
wallets that are running on a website. The website has ownership of your wallet.
"Similar to online banking." Advantage: Easy to access from anywhere in the world. The wallet client allows you to do direct transactions on the bitcoin network.
Disadvantage: The website could potentially get hacked or the owner could run off with your money. You have to trust the intermediary.
wallets that run on your computer (offline) The data on your hard drive is now worth money.
Advantages: Always in control of your money (computer). The wallet client allows you to do direct transactions on the bitcoin network. No need to trust intermediary, only your computer.
Disadvantages: Your hard drive could crash (you need backups), your computer could get a virus if you do not secure it or someone could steal your computer.
wallets that run on papyrus (offline) Since your keys are on paper, nobody on the internet can potentially steal them.
Advantages: Even in 5 years you still have your wallets BTC secure. No intermediary, only trust you don't forget where you left the paper.
Disadvantages: Unless you spill coffee on them