What are the Offline bitcoin wallets?


Jean Nichols | Updated: 19-10-2021 11:14 IST | Created: 19-10-2021 11:14 IST
What are the Offline bitcoin wallets?
Image Credit: Pixabay

Introduction:

Bitcoin is the most popular cryptocurrency, and we all know that. We store cash or fiat currency into our physical wallets, and we know that money is safe, but bitcoin may not be secure in digital wallets. We need digital wallets to store our bitcoins, and it is difficult to predict if the wallet is providing proper security or not. You can save your cash or physical money from thieves, but there is no solution to get your bitcoin or money back once lost in the digital world. So, choosing the right bitcoin wallet is indispensable. So in this article, we will talk about the world's most secure wallets called offline wallets?

Types of bitcoin wallets:

There are mainly three types of bitcoin wallets given below

Bitcoin exchanges are wallets provided by third parties, and they will take some commission or fees for using their platform, and there are many bitcoin exchanges. The first is exchange wallets, the second is online wallets, and the third is Offline wallets. These wallets are a centralized system that means hackers can hack the wallet if they find any bug or security issue, and if the exchange gets hacked, you will lose all your bitcoins. Click here to know more about the exchange wallet – bitcoin circuit.

The second is an online desktop or mobile wallet. The second wallet is more secure than an exchange wallet because it is separate and not a third party. You can use various bitcoin wallets. There are a lot of online wallets available on the internet, and if you want to use these wallets, you must have an internet connection. But there is one issue, if your computer or mobile has an internet connection, then a virus or malicious data can destroy or access your private key, and you can lose your bitcoins.

The third and world's most secure wallets are offline wallets. Yes, the name describes that there is no need for internet connectivity. If there is no internet and no third parties, that means only you are the owner and manager of your bitcoin wallet, and no one except you can trace or track the transactions. So in this article, we will discuss the two bitcoin offline wallets that people often use who want to hold bitcoin for the long term with proper safety.

There are the following two offline bitcoin wallets that you should use if you want to invest in bitcoin for the long term given below:

Paper Wallet:

Paper wallets are the most secure wallet. The paper wallet consists of two words, paper, and wallet. You already know the meaning of the paper, and a wallet means a place for storing bitcoins digitally. In simple terms, you will keep your bitcoin on a piece of paper, but how is it possible? It is possible because you have to take a print of a public and private key. There will be two keys printed on the paper, the first is the public key, and the second is the private key.

Public key: - public is the key that you can publically share with anyone. It is like the UPI address you use to receive payment. Just share your public key or public QR code and receive compensation into your paper wallet.

Private key: - Private key is vital because it has spending power. Do not share this key with anyone because if someone gets your private key, anyone can spend or transfer your bitcoin, and you cannot sue in court because it is a decentralized system.

There are a lot of websites on the internet that generate paper wallets for you. You can check it now on Google by searching "bitcoin paper wallet generator" and going with the first website. Just move your cursor, and it will randomly generate a private key and a public key for you. After successfully creating the paper wallet, it can take the print and share the public key to anyone to receive bitcoins. If you want to check your bitcoin in a paper wallet, you must connect your paper wallet with a live wallet.

Hardware wallet: - Hardware wallet is the second offline wallet that is secure and preferable to a paper wallet. A hardware wallet is the same as a USB, and you need to put it in your CPU and store your bitcoin into it. There will be private and public keys stored in this offline chip, and the most prominent feature of this wallet is that you can carry it with you. It will cost you around 80 dollars, and the price may vary according to the components. If you feel a virus in your computer or your computer gets hacked, no one can access your private key because it is safe in the offline chip, and only you can see it. You can put it out anytime from the computer.

(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)

Give Feedback