Desktop wallets need to be downloaded directly to your machine. They are less recommended than mobile wallets for a simple reason – desktop machines are at a higher risk of being infected by malware or other malicious software that might steal your bitcoins. If you decide to use desktop wallets, it is highly recommended that you choose the one offering enhanced security features allowing you to mitigate these risks.

Online Wallets or Web Wallets are the easiest to use as you only need to sign up for a new account on I.E. BlockChain or any other such service. Online wallet allows you to access it from any device connected to the Internet, making the entire transaction very easy. But you need to remember that these are the least safe of all wallets. Your private keys are stored on another server, which essentially are taking your Bitcoins out of your control. It is highly recommended to send your Bitcoins to downloaded wallet straight after purchase has been made.

A Paper Wallet is in other words a term for printing out your public and private keys on a piece of paper. Paper Wallets are more secure than using software or online wallets because you physically have your keys printed on a piece of paper, which you can store in a secure place. It is also called a Cold Storage method, as it is entirely offline.

Hardware Wallets are stand-alone hardware cold-storage devices, like a popular USB shaped devices which have to be plugged into your computer and generate keys on the fly while making a transaction. They can be also secured with a password to combat theft. In overall, hardware wallets like paper wallets are the most secure option, as these are offline and cannot be hacked.