Bitcoin is a virtual currency that was created back in 2009. Bitcoin uses a peer-to-peer technology which helps in facilitating fast and instant payments. The identity of the person who created Bitcoin is still not confirmed.
What Is a Bitcoin Wallet?
As the name suggests, bitcoin wallet is a wallet where you store your Bitcoins. It a software that allows you to store your Bitcoins safely. Now, it is not actually a wallet, it is just a software where you store your private key, which is a secret number for each bitcoin address saved in the wallet of the person. You cannot store a bitcoin anywhere. There are four types of wallets, these are:
Why Do You Need Bitcoin Wallet?
It is extremely important for you to save your Bitcoins because Bitcoins are prone to being stolen by hackers. Therefore, you must keep your Wallet safe so that your Bitcoins are saved as well. Having a strong password on your Wallet could be helpful and save your Bitcoins.
Understanding Bitcoin Wallets
Bitcoin wallet, also known as Digital Wallet, is important when you are obtaining bitcoins. Bitcoins are just like cash and just like that, bitcoin wallet is an equivalent of physical wallet. In a bitcoin wallet, you do not store literal bitcoin, you simply store the information regarding bitcoin such as your private key to access the bitcoin address for transactions. It is extremely important to have a bitcoin wallet at your service.
#1 Mobile Wallets
Mobile wallets are those wallets that help you make payments anytime, anywhere because mobile phones could be carried along at various places. Mobile wallets can help you create your bitcoin address which you can use for receiving and sending the money. Once you have the app installed on your device, you will have a complete control over your wallet. With this, you can store your private key as well. You can pay through the mobile wallets on stores by simply using the “Touch-to-pay” option by NFC scanning the QR code. Some of the best Bitcoin wallets for your mobile that you have to your service are Hive android, bitcoin wallet and Mycelium Bitcoin wallet.
One drawback it comes with is that it does not generally work on both Android as well as iOS system. Therefore, it is best to search for the bitcoin wallet best suited for your system.
#2 Desktop Wallets
Desktop wallets provide you with the same features as the mobile wallets do, however, the only difference between the two is that you cannot carry your wallets to every place. Through Desktop Wallets, you can easily make payments as well. Some of the best wallets for desktop are bitcoin core, hive OS X, Armory, MultiBit, etc.
#3 Hardware wallets
These are undoubtedly the most reliable Bitcoin Wallet because the bitcoins in these wallets are stored on physical equipment, which is usually plugged into your PC through a USB port. Hardware wallets do not, however, come free of cost as you need to pay between $100 to $200 to use the services.
#4 Web Wallets
With these wallets, you can easily access Bitcoins on a browser, doesn’t matter the device. The most secure and popular bitcoin wallets are Blockchain and Coinbase.