As you need a wallet to store the money physically in the same way to store bitcoins and perform bitcoin transactions, you’ll require a digital wallet. Bitcoin wallet provides you with complete control over all the digital money stored in the wallet. Since bitcoins are a digital currency, they risk getting hacked and breached. Therefore, special keys are used to access the bitcoin wallet to avoid these threats.
What is Bitcoin?
Bitcoin is a digital currency or digital money to store, exchange and make payments on a cryptocurrency platform. This is based on blockchain technology. Wherever there is a matter of payment, there is also a threat of being hacked or the involvement of a third party that can take any illegal action against your transactions. Therefore to keep it secure, a specialized key is used. This key is access to all your bitcoins. This key is used for the authorization of the legal user by asking for the passwords and login information. Bitcoins have no administrator or owner. Profitmaximizer is a good platform for beginners to invest according to the favorable market situation.
An overview of bitcoin wallet
Since bitcoin is a digital wallet, storing and proceeding with the further bitcoin transaction and payments through it. Bitcoin wallets are designed to store bitcoins with access to digital keys. It is a software program that allows transactions based on bitcoins. And every bitcoin is associated with two keys; one is a public key that all people can use to transfer the bitcoin to the intended wallet. The second one is the private key that the owner or legal user can only use to transfer the bitcoin from the wallet.
Types of bitcoin wallets
Bitcoin wallet is categorized based on software.
- Hardware wallet: This wallet is a handheld device that stores bitcoins offline. It stores the complete information about the user’s private key. The bitcoins are stored in this hardware form of wallet and then plugged into some pc or system to perform the transactions, much like a USB. Hardware wallets provide high security while interacting with the blockchain.
- Software wallet:
The software bitcoin wallet is further divided into several categories:
- Desktop wallet: Desktop wallets are the software wallets that store the user’s private keys regarding bitcoins online. It is installed on the pc or any desktop to provide the user complete access to the bitcoins. It is considered less secure because of the numerous threats to the pc or desktop. This threat can also affect the desktop wallet in the wrong way.
Examples of desktop wallets are Bitcoin Core, Armory, Electrum, Hive OS X.
- Mobile wallets: These wallets are apps installed on smartphones or other mobile devices and perform the same function as desktop wallets. The bitcoins and users’ encrypted private keys are stored online. The transactions of the bitcoins can be done efficiently through QR codes and many other ways. Since mobiles are portable and flexible, the threat of being hacked and stolen is constant in people’s minds. So the mobile wallets should be chosen carefully. Some examples of bitcoin wallets are Hive Android and Mycelium bitcoin wallet.
- Web Wallets: web wallet involves the transaction and storage of bitcoin online on your behalf. Since all the action regarding the bitcoins is being done online, it provides the advantage of being accessible to the coins from anywhere at any time through any device. Some examples of web wallets are Coinbase, Blockchain, and Gemini.
Key benefits of bitcoin wallets
- Bitcoin wallets can be used very efficiently without getting through lots of complexity.
- Management of the user profile is easy.
- Provide high security to your bitcoin through the encrypted key.
- It makes the transaction in the blockchain very smooth and fast.
So as you get a complete overview of bitcoin, you can buy and control them very efficiently. Awareness about bitcoins can lead you to become richer and smarter in the crypto market. Everyone is running behind this and wants to invest even from a very small amount but hoping ar ta better result every second. These bitcoins have no relation to any bank or any government. That’s why this is getting even hotter and buzzing matter for today’s youth.