A Wallet to hide

The electronic wallet that is used for storing Bitcoin is called Bitcoin wallet. To define a wallet technically we can say Bitcoin cannot be stored anywhere to store it there is one secret number attached to every bitcoin that gets saved in the owner’s wallet. Using the wallet the bitcoin owner can send and receive the coins and keep the balance amount with him.

This digital wallet is important for obtaining Bitcoin. To understand the process in the better way we can refer Bitcoin as cash and bitcoin wallet as a physical wallet. As we all know wallets are meant to store cash in case of bitcoin it is stores the secure private key that is used to unlock the Bitcoin address and carry out the transaction.

Four important and best-known wallets of bitcoin are desktop, mobile, we and hardware.

  • Desktop wallet: This wallet can be installed on the desktop computer; the user has full control of the wallet. This wallet creates bitcoin address to send and receive bitcoins and stores the secret key. Some of the commonly used bitcoin wallets are Electrum, armoury, Bitcoin core etc.
  • Mobile Wallet: This wallet can be used on the go and one does not have to sit in one place to access this wallet as it can be installed on android mobile. This wallet can function in the same way as a desktop wallet. This wallet can be used for paying the bills of physical stores. Some of the popular mobile wallets are Mycelium Bitcoin Wallet and Hive Android etc. Several malware software is creating trouble or mobile wallet users so it is wise to do a little research before installing any mobile wallet.
  • Web wallet: this wallet can be accessed from anywhere using any browser. One should be very careful while using web wallet as it stores the secret private key for the Bitcoin. Coinbase is one of the popular web wallet contributors.
  • Hardware wallet: As the name says it is one of the secure wallets to store Bitcoins. It a physical equipment that can be used through the USB port. This device isn’t free and it cost approximately $100 or $200.

Storing the bitcoins in the wallet does not secure it, the wallet itself needs strong security to prevent hacking as it is a high-value target for them. To safeguard a wallet one must encrypt it using a strong password and store it offline. Frequent backups should also be taken for these wallets. To know more continue reading about Bitcoin Trader

 

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