Exchange (custodial)
Your Bitcoin is held by an exchange. You donโt control the keys. High risk of hacks or frozen withdrawals.
๐ผ Hardware Wallet
A physical device (Ledger, Trezor, Coldcard). Keys stay offline. Considered safest for long-term storage.
๐ฑ Software Wallet
Apps or desktop wallets (Electrum, BlueWallet). You control the keys, but vulnerable if your device is compromised.
โก Lightning Wallet (non-custodial)
Wallets where you run your own Lightning channels (Phoenix, Breez, Zeus). You hold the keys, but itโs more complex to use.
๐ฆ Custodial Wallet
Examples: Wallet of Satoshi, Cash App, Strike. Easy to use, but someone else controls the keys.
๐ Paper / Steel Wallet
Seed phrase on paper or engraved in steel. Secure if hidden well, but can be lost, stolen, or destroyed.