If you are making investments in Bitcoin, you are probably wondering what bitcoin wallet should i use? The great news is that there are loads of choices out there, and many good quality hot wallets are absolutely free. If you want to have a more secure cold wallet, there are also some very affordable options out there.
The first thing you should understand is what a Bitcoin wallet does. When you own Bitcoin, really, you have private keys that allow you to send Bitcoin to another wallet on the blockchain. These keys are stored in a Bitcoin wallet, which makes choosing the right wallet pretty important.
A hot wallet makes sense for Bitcoin that you plan to use on a regular basis, or accepting small payments. While hot wallets are free and very easy to use, they are more likely to be hacked because they are basically connected to the internet 24/7.
Cold wallets are generally hardware devices that do the same job, but they aren't connected to the internet unless they are transferring data. Additionally, cold wallets tend to have higher levels of security because they have specially made hardware, which is another layer of security.
There is no single correct model for anyone that needs a Bitcoin wallet, so consider how you are going to use your wallet, and what the potential security risks could be.