Introduction to crypto currency chapter 2:

Chapter 2: Wallet

Bitcoin wallets are categorized into three:

1) Centralised wallet (Luno, Paxful, localbitcoin, remitano, etc)

2) Semi Centralised Wallet (Blockchain.com etc)

3) Decentralised wallet (Electrum.org, Mycelium, etc)

1) Centralised wallet -:

Doesn't give you full control of your money. They act as a full banking system.

That's to say, they don't give access to your private keys which you can use to restore your Bitcoin just in case they have an issue or close down. This Wallet is mainly used by people who care less about privacy and those who don't care to hand someone over their money.  Just like we do hand over our fiat to the bank. These guys can close your account at any time they want the same way banks do. Some of them perform KYC on you. Web registration and login is required to use such wallet.

Not a good choice in this space.

2) Semi-decentralised wallet :

This guys gives you access to recovery phrases which you can use to restore your account in the case of loss of device or password. Web registration and login is required. They don't normally perform KYC for receiving and sending of cryptocurrency. If you forget your login and the recovery phrase, kiss your money bye-bye. You can't get it back. Options to reset password is not normally given. The recovery phrase will enable you to retrieve your money in the case of 2FA and login issues. Example of semi-decentralized wallets:  blockchain.com

3) Decentralised wallet :

This wallet doesn't have a web login or registration. You just download the wallet and get your either recovery phrase or private keys. If you forget your recovery phrase and private key, kiss your money bye-bye. It will be counted as lost bitcoin.This wallet gives you 100% full control of your money. Having this wallet is like having a full banking system. You can send and receive money anything anywhere. No restrictions. Most recommended.There's a popular saying in this space. If you don't have your private keys, you don't own the money. Examples of decentralized wallets: Electrum.org, Mycelium (Google playstore) etc. I personally use Electrum on both mobile and PC. Note: Backup your recovery phrase or private key and keep it safe. Anyone who have access to it have access to 100% of the money. Note: If you're using either a centralized wallet or a semi-decentralized wallet, ensure you set up 2FA using Authy, failure to do so, you will lose your money.