If you want to buy and store bitcoins, then availing of a bitcoin wallet is a must.
A Bitcoin wallet is defined as software that helps you to store your cryptocurrencies safely and securely. For safety purposes, you should not store your Bitcoins anywhere. If you already have a Bitcoin balance in your wallet, the software will provide you with a secret number or private key together with the wallet’s Bitcoin address.
This is one of the important aspects that need to be taken into consideration when receiving and sending Bitcoin tokens. There are several forms of Bitcoin wallet, such as hardware, web, mobile, and desktop.
Understanding the Different Forms of Bitcoin Wallet
Digital wallet is another term used to define Bitcoin wallet. If you are a trader, it is important to get a digital wallet to perform crypto trading. A Bitcoin wallet works the same as your physical purse. The only difference is that the former wallet is used to store secure private keys and other relevant and important information instead of a fiat currency. As mentioned, Bitcoin wallets have four different forms, including hardware, web, mobile, and desktop. Let us further understand each of them.
By far, hardware wallets are considered to be the most secure form of Bitcoin wallets. This is because it allows Bitcoin users to store tokens on physical equipment that you can plug into your computer through an available USB port. The good thing about this form of Bitcoin wallet is that it protects your information and tokens against possible virus attacks. Considering the tight security, it offers, hardware wallets are not free. You need to purchase it, and it has a price range of 100 US Dollars to 200 US Dollars.
Web wallets are the perfect form of storage space if you want to store your Bitcoin tokens conveniently. This can be accessed using your mobile device or browser. You need to carefully select your web wallet as it will hold your private keys online. The popular web wallets provider includes Blockchain and Coinbase.
You can use mobile wallets for paying Bitcoins in physical stores using the NFC (Near Field Communication) scanning of a QR code and “tough-to-pay” feature. The popular examples of mobile wallets include Mycelium Bitcoin Wallet, Hive Android, and Bitcoin Wallet. You can use Bitcoin wallets on your Android or iOS devices. But there are reported situations wherein this form of wallet poses significant malware. So, make sure that you will do thorough research before making a decision.
As stated by its name, you will install desktop wallets on your computer. This means that as long as you have access to your computer, you have full control of your Bitcoin wallet. Desktop wallets work the same as mobile wallets. This works as providing the Bitcoin users to receive and send Bitcoins. You can store your Bitcoin’s private key in this form of wallet. Perfect examples of desktop wallets include Electrum, Hive OS X, Armory, MultiBit, and Bitcoin Core.
Bitcoin wallets are the main target of scammers and hackers. Thus, you need to protect your tokens as much as possible. To protect the wallet from hackers, you may try encrypting it using a strong combination of passwords.
We also recommend you to back up both your mobile and desktop wallets, considering the existing problems with the wallet software installed on your mobile device or computer could delete all the important information about your Bitcoin.
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The Importance of a Bitcoin Wallet