Introduction to Bitcoin Wallets

Bitcoin Wallets

April 20, 2019

FrederikNielsen
15

If you decide to buy Bitcoin, then you probably already know that you first need to have a Bitcoin wallet. To date, there are several options “Bitcoin” repositories. Cryptocurrency wallet – an application, program or a separate device for sending, receiving or storing electronic money. In the terminology of this payment system, a wallet is a pair of two very large numbers. The first number is called the public key – this is the publicly accessible address that is used to send or receive Bitcoins. It is also convenient to represent it as a bank account. You can study them in this article that we have prepared for you.

Bitcoin Wallets

Types of Wallets

Wallets are different, depending on the device for which they are intended – you can even not use the computer at all and write the keys on paper. Wallets for storing bitcoins are of four main types: wallets installed on your own computer, mobile wallets, Internet wallets, and paper wallets.

Online wallets

Online, or Internet wallets store secret keys on the Internet, on a server that the user does not control. There are several such server services, and they are used, including mobile wallets and wallets for computers – to synchronize data between devices.

Mobile wallets

Unfortunately, the wallet for the computer is not too useful, if you went outside and want to pay for something in the store – in this situation a mobile wallet is useful. This is a smartphone application that stores secret keys for your Bitcoin addresses and allows you to pay directly from your phone. Some wallets use the NFC protocol, allowing you to not enter any information and pay for purchases, simply putting the smartphone to the reader.

Desktop wallets

If first of all you think about security when working with Bitcoin currency, then the most preferable option is to install special software on your home computer. Thus, the file with access keys will be stored locally.

Paper wallets

This is one of the most popular and cheapest solutions, and several sites offer similar services. They create for you a bitcoin address and a picture with two QR codes: one is the public address where bitcoins can be received, and the second is the private key that can be used to send bitcoins stored at this address.

Bitcoin Wallets

Bitcoin cold storage

If storing bitcoin keys in digital form seems too dangerous to you, for example, there is another way: a wallet that is stored on storage media that is not connected to the Internet. You can store fixed assets in such a cold wallet, and a small operating reserve – in a more convenient wallet connected to the Internet. Thus, even if you lose a mobile phone or a wallet on a laptop will be damaged as a result of a hard disk failure, only a small part of bitcoins will be lost.

The best Bitcoin wallet

First of all, one should understand that there is no universal wallet that can meet everyone’s needs. You need to decide on the type of wallet for your specific criteria. After all, your Bitcoins have two storage options: they can be kept on computers, smartphones, tablets or on online wallets. It is convenient to keep the wallet on the computer in terms of the security of your funds because in the case of online wallets you have to rely on third-party services, although they have certain advantages. However, keeping Bitcoins in your home is safer. In addition, for beginners, they will approach more.

Frederik Nielsen
Frederik Nielsen

I’m a freelance writer and full-time curious person. My main interests are philosophy, politics, art, culture, science, and how they’re all interlinked. When I’m not writing, I’m fronting a band, producing records, and making videos. I’m also currently working on launching a YouTube channel that will focus on culture and politics. I think blockchain technology is fascinating because of the huge potential it has to revolutionise not only the financial sector, but society as a whole.

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