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Bitcoin Wallet Address: Know different types of wallets, features

Woman using a smart phone displaying a bitcoin wallet screen.

Do you have investments in cryptocurrencies? Those people who are not interested in taking risks with investments in new types of technology, however, are also keen to update themselves with the developments in cryptocurrencies daily.

Even if you have plans to enter the crypto world, the following information could be helpful in future. In this article, we take a look at the different types of Bitcoin wallets, their features, address type and so on. You will also get info like the top Bitcoin wallets in 2021 from this feature. If you are interested to enter the cryptocurrency arena, we can guide you to the entire process.

What is the format of Bitcoin wallet?

If you want to send and receive bitcoin, you need a wallet address. Firstly, the wallet address consists of 26 to 35 alphanumeric characters. Secondly, you can choose several address formats in cryptocurrency. However, you have to understand that the platforms and exchanges support only certain address types. For eg, if you want to transfer cryptocurrency to another person’s bitcoin address, that person’s wallet software should support that sort of address type.

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As you are aware of Internet Protocol, there are several versions of IP, including IPv4 and IPv6. Similarly, there are several bitcoin address formats as well such as P2PKH, P2SH, and bech32. These are the three Bitcoin Core address formats that you can choose from. The most important thing to note here is that your wallet or exchange might not support all these formats.

For those who are using P2PKH or legacy address, their bitcoin address starts with a 1. At the same time, the bitcoin address starts with 3 for those who are using P2SH addresses. In the case of Bech32 address format, it starts with “bc1”.

There are two main types of cryptography, including private key and public key. Private key is also considered as ‘symetric’, while public key is known as ‘asymetric’.

Different types of Bitcoin wallets

You know that you can store money in physical wallets. Similarly, by using the blockchain wallet, you can manage your cryptocurrencies securely. There are two types of blockchain wallets: software wallets and hardware wallets. You can finde web wallets, mobile wallets and desktop wallets under the category of software wallets. At the same time, hardware wallet can be in the form of a physical device. You can connect your hardware wallet to a laptop via USB or other ports.

Top Bitcoin wallets in 2021

Let’s pick some good wallets for you based on the opinion of experts in the field. If you are a beginner and don’t know which is the best wallet for you, we suggest Blockchain Wallet. It’s good for the beginners because of its easy to use feature and it’s less complicated for a new user. This wallet has more than $1 trillion in crypto transactions. If you want to go for a mobile wallet, then Trust Wallet is a good option because of its security features. The wallet is considered a secure option to keep your investments from the threat of hackers and scammers. It also supports 53 blockchains. And if you are looking for the best cold wallet for Bitcoin, then you can choose Trezor Model T. It’s a hardware wallet and you can control the data yourself. It also supports over 1200 coins. If you are looking for the desktop option, then Metamask could be your best choice because more than 21 million users have trusted this wallet for keeping their investments safe.

Conclusion

As you know already, cryptocurrency is an investment option that is capable of giving you good returns. At the same time, considering the volatile nature of it so far, you can be cautious in your approach while putting your hard-earned money in a new technology. Those who have invested in the early stages of Bitcoin have made a lot of money and some of them have stories to tell about how they became a millionaire. As in the case of all investments, timing and entry are significant factors for making money in crypto as well. If you timed your entry correctly, you can expect miracles from this sort of investment. As an interesting new type of investment, it would be good for anyone to learn more about the chances of making money from cryptocurrencies.

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