Before owning any bitcoin, you need somewhere to store them. That place is called a “wallet. Actually, a wallet usually holds justcoin bitcoin wallet private keys, and many bitcoin investors have several wallets.
Here we’ll briefly look at the different types. Electronic wallets can be downloaded software, or hosted in the cloud. The former is simply a formatted file that lives on your computer or device, that facilitates transactions. Installing a wallet directly on your computer gives you the security that you control your keys.
Most have relatively easy configuration, and are free. The disadvantage is that they do require more maintenance in the form of backups. If your computer gets stolen or corrupted and your private keys are not also stored elsewhere, you lose your bitcoin. They also require greater security precautions. If your computer is hacked and the thief gets a hold of your wallet or your private keys, he also gets hold of your bitcoin. The original software wallet is the Bitcoin Core protocol, the program that runs the bitcoin network. All are easy to set up, come with desktop and mobile apps which make it easy to spend and receive bitcoin, and most are free.