Different types of wallets You decide which wallet is right for you. Hardware Wallets Hardware wallets are physical electronic devices, such as USB sticks, designed for the sole purpose of securing Bitcoins. Hardware wallets are secure offline devices. They store private keys offline so they cannot be hacked. So if convenient, reliable Bitcoin storage is important to you and security is a top priority, then hardware wallets should be your first choice. Hardware wallets have the advantage of keeping private keys away from vulnerable internet-connected devices. The extremely important private keys are thus stored and protected in a completely secure offline environment on an external hardware wallet. The Ledger Nano S is one such example of a hardware wallet based on a USB stick. What makes this wallet so secure is that the stick must be connected to the computer, tablet or smartphone before coins can be transferred. The three best and most well-known Bitcoin hardware wallets are: • Ledger Nano S • KeepKey • Trezor The extremely important private keys are stored in a secure offline environment on the hardware wallet. Fully protected, the device can even be easily connected to a malware-infected computer. Bitcoins are digital money and evil lurks everywhere. So it's not far-fetched that criminal hackers may target your computer's "software wallet" and try to steal your Bitcoins by gaining access to your private key. It therefore makes sense to generate and store private keys offline by using a hardware wallet. This ensures that hackers cannot find a way to access your Bitcoins. Hackers would have to steal the hardware wallet itself, but even then it is protected with a PIN code. In my opinion, the security methods of Bitcoins and co. are far more secure today than money in a bank. So don't worry about your hardware wallet being stolen, lost or damaged; as long as you have created a secret backup code, you can restore your Bitcoins at any time. You can think of your hardware wallet as your own underground Fort- Knox. So if you have a significant amount of Bitcoins, you should definitely get yourself a hardware wallet. Most hardware wallets also have screens that provide additional security by checking and displaying important wallet details. Since it is almost impossible to hack a hardware wallet, its screen is more secure than the data displayed on your computer. The advantages of hardware wallets are quite clear: • A very simple way to store Bitcoins safely • Easy to create backups and backup • Very easy to set up even for less experienced users The disadvantages of hardware wallets are: • They are not free and because of the high demand, there are often supply bottlenecks.However, these "disadvantages" should be worth it to you if you have a considerable amount of Bitcoins to protect. Web wallets Wallets that run on devices connected to the internet such as computers, mobile phones or tablets are called web wallets or hot wallets. As you have already experienced with hardware wallets, private keys are your secret codes that give you access to your coins. However, since web wallets generate private keys on a device connected to the internet, these secret codes cannot be considered 100% secure. Therefore, you should think of a web wallet as your wallet and only store as much money in it as you need on a daily basis. Never, however, your entire savings. Web wallets are good for making regular payments, but not good for storing bitcoins securely. The advantages of web wallets are quite clear: • A very easy way to store small amounts of Bitcoins. • It's very easy and fast to send and receive payments • Some hot wallets even grant access to funds across multiple devices The disadvantages of web wallets are: • They are unsuitable for the safe storage of larger quantities of Bitcoins Which is the best wallet for you? There is no "best Bitcoin wallet"! Only your own needs determine which wallet is most suitable for you. Every wallet has advantages and disadvantages, it's the same with bank accounts, and the different wallets are designed to meet most needs. If you are an investor and only use a wallet to store your coins, then a hardware wallet is certainly the right choice for you. If you want to integrate your coins into your everyday life and use them to make payments or send and receive coins without any problems, then a software wallet is definitely the right decision for you. Be that as it may, some wallets are more security-focused, while others are more privacy-focused. One's particular needs alone should determine which wallet or combination of wallets one uses. Some wallets that can be purchased or downloaded for free can be found under Hardware Wallets and under Web Wallets on the next pages.

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