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What Is A Bitcoin Wallet? A Complete Guide

You all have heard of cryptocurrency. Now you know that cryptocurrency is the procedure to trade with digital currencies. You can be rich within a wink by some smart moves with cryptocurrency. All you have to do is purchase some digital coins and wait for the right time when the value of the coins reach its best.

What Is A Bitcoin Wallet

Why Should You Choose a Bitcoin Wallet?

So, you are surely curious to know how to make money using cryptocurrency. No? That’s why I am here. You have to Create Cryptocurrency first. There are many currencies that offer you to have business with them. Among them, Bitcoin is unbeatable to date. It is the most trusted digital currency. Seventy percent of people among the cryptocurrency investors go for Bitcoin.

Today you will get to know the undeniable facts of Bitcoin wallet. When you’re a beginner and about to open up a Cryptocurrency Wallet Development, you have to know first, what it actually is and why do you need it! Let me put in a word for the Bitcoin wallet.

What is a Bitcoin Wallet?

Digital cash is not something like the money you put in your moneybag. It is a completely virtual thing. Bitcoin is your property but not like your cash money. You can’t store your bitcoin in your moneybag. So you need something special to store your bitcoins. That is called a bitcoin wallet.

 It is fundamentally software. A bitcoin wallet stores your bitcoins. Technically, bitcoins are not stored. It doesn’t store your bitcoins accurately but it provides you a private key. It is a kind of password. When you have a balance in bitcoin, you can access it using the private key.

The Usefulness of a Bitcoin Wallet

When you are on your journey on the highway of cryptocurrency and your destination is getting rich, you have to choose a specific type of currency. For that purpose, what can be more trustworthy than bitcoin?

As I just said, bitcoin is not like your hard cash. You can’t use it unless you create your bitcoin wallet. It will allow you to utilize your bitcoins. A bitcoin wallet will provide you with a private key. It will secure your property.

Varieties of Bitcoin Wallets

Here you get the choice to select your preferred bitcoin wallet among various types of digital wallets.

a.    Paper Wallet

It is a very secure wallet that is always out of reach of the hackers. It is mainly a document that contains your address. You will get a private key when you open the wallet account. A QR scanner will be there to ensure the security of your money.

You have to scan the QR and provide your secret key when you want to transact via your paper wallet.

b.    Mobile Wallet

Let me be honest with you, this type of bitcoin wallet has some serious security issues. You should not go for it when you don’t want to be the prey of hackers and lose your money in their hands.

So, I will suggest you not to open up an account on bitcoin mobile wallet unless it’s a nominal amount of money.

When you are about to invest a little amount of bitcoin, then you can choose a mobile wallet. That has some facilities. It is very useful when you want to transact daily. It is a smartphone application. You have to install this app on your mobile phone. You can continue your transaction with all bitcoin users using your mobile bitcoin wallet.

Although it takes some gigabytes to be stored, it has a very simple transaction method. You can install a Cryptocurrency Exchange Software to secure your bitcoin wallet from hackers.

c.    Hardware wallet

It is one of the most uncommon bitcoin wallets. When you are the investor who wants to deposit a huge amount of his bitcoin for a long time, then a hardware wallet is the most suitable one for you.

If you invest your bitcoin in your hardware bitcoin wallet. A hardware wallet can never be hacked by hackers. But there is a problem with using a hardware wallet when you want to use your bitcoin on a regular basis. Transacting money from a hardware wallet is a lengthy and time-consuming procedure.

Still, the screen of the hardware wallet makes its security stronger.

d.    Web Wallet

This type of bitcoin wallet secures the secret keys on the server. You can always access it whenever you are online. It is regulated by a third party control. It will provide you a one-stop solution at the service of Coinbase. The method of using it is very simple. You can pay, purchase, get and trade bitcoin with opening your bitcoin web wallet.

It has notable similarities with mobile wallets. You can control your e-wallet by using your desktop and mobile as well.

John Paul
John Paul
John is a full-time blogger and loves to write on gadgets, search engine trends, web designing & development, social media, new technologies, and entrepreneurship. You may connect with him on Facebook, Twittter and LinkedIn.

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