Software wallets can either be desktop, mobile or online wallets.
Types of Software Wallet:
A Desktop wallet is a software that can be downloaded and installed on your computer. The wallet can only be accessed through this computer.
An online wallet is controlled by an intermediary which is having its own wallet, but stores your cryptocurrencies, and often asking for a small fee if you want to withdraw.
Mobile wallets are applications on your phone and are user-friendly. They can be handy if you plan to buy/sell anything in a retail shop with your cryptocurrencies.
Software wallets have the smallest security layer offered on the whole Blockchain. However, if you are cautious enough, you will not have any problem. A desktop wallet is the most secure software wallet but can be accessed if your computer gets hacked or stolen and if your password is not strong enough.
Even if you may trust big companies like Binance or Coinbase, offering online wallets, they might be hacked. In this case, you might not be able to see your funds anymore. This happened a lot in the past, where exchanges lost the user’s funds or got hacked, and people lost all their savings. Here you can learn more about the biggest Exchange hack of the history of Bitcoin.
List of 7 best Bitcoin software wallets in 2020 :