The Bitcoin wallets act like regular wallets do, however they are different in 3 things:
- Bitcoin wallets only store cryptocurrencies or in this case Bitcoins (you can’t store your ID or credit card)
- Bitcoin wallets aren’t physical (at least not in the traditional sense)
- Bitcoin wallets usually provide a sense of sending Bitcoins over the web which is something that fiat wallets don’t do.
So, you can’t store dollars, credit cards, euros, and etc. The Bitcoin wallet only allows you to store your virtual coins or Bitcoins. It is very much unlike a traditional regular wallet. The Bitcoin wallets don’t have to be small or pocket-sized and you don’t need any physical slots that keep Bitcoin. What we are trying to say is that Bitcoin wallets store data, and the data they store are actually the private keys that allocate your Bitcoin holdings. A lot of people like to compare Bitcoin wallets to bank accounts. You can store money in a digital way and use different tools to receive and send money online.
There are different types of Bitcoin wallets available and you are probably wondering which Bitcoin wallet to choose for your crypto coins. We have categorized the wallets into 3 different groups: web wallets, hardware wallets, and software wallets.