What is Bitcoin Wallet
The bitcoin wallet is a means to access your funds, transfer and transact. We will discuss the general principles and practices of a Bitcoin wallet. Along with this basic information, we will learn how to add money to the bitcoin wallet and the advantages and disadvantages of different types of wallets.
Downloading a Bitcoin wallet will be your first step towards your cryptocurrency Journey. It will be a medium to access your funds and you can also use your cryptocurrencies for purchasing goods as well as transfer and from exchanges for trading. Before we going to deep let’s start with basic details.
How to use a Bitcoin Wallet?
As we all know that the Bitcoin is a digital currency. It doesn’t exist in physical shape or form and owning and storing it is an entirely different approach than with the traditional assets. You can’t store your bitcoin currency in a safe or vault. The currency only exists as lines of code on the Blockchain. Which is already secured by the network. These line of codes are popularly known as Cryptography. it’s your private keys that are used to access your public Bitcoin address and sign for transactions that need to be securely stored in your wallet.
Only the holder of these private key will be able to confirm the transaction when they send or spend Bitcoins.
So, unless your private keys are safely stored in a wallet, you will always be at risk of your funds being stolen. before we compare crypto wallets, Let’s have a quick look at the major difference between private and public keys.
Private Key Vs Public Key
A private key is a variable in cryptography that allows a holder to access his or her cryptocurrency. A private key is an essential aspect of bitcoin and altcoins, and its security helps to protect a user from theft and unauthorized access to funds.
On the other hand, Public key cryptography is a cryptographic system that uses pairs of keys: the public key and private key. Public keys which may be spread widely, and private keys which are known only to the owner. Both public and private key are built through the cryptographic algorithms based on mathematical problems to produce one-way functions.
Types of Wallet
Below we have mentioned five different types of wallet which you can use to store your keys. Let’s have a look:
1. Paper Wallet: We can define a paper wallet as a piece of paper where your private and public key are printed together. Usually, the keys are printed on a paper wallet in the form of QR code so they can be quickly scanned in the case of receiving or sending Bitcoin.
2. Mobile Wallet: A mobile wallet is a software application. You can easily download it on your smartphone. A mobile wallet is a necessary tool for anyone that often uses cryptocurrencies to pay for purchasing goods or trading them on a daily basis.
3. Web Wallet: A Web Wallet is a web service provided by 3rd parties. There are thousands of companies provide this service by storing your keys on an online server. This server is accessed and controlled by the company.
4. Desktop Wallet: A desktop wallet is software. Which you can easily installed on your computer. It stores the private key on the hard drive of the system.
5. Hardware Wallet: A hardware wallet is a special type of bitcoin wallet which is built to store your private keys in offline away from the unsafe online environment.
How to add money to Bitcoin Wallet
Bitcoin wallets are used to protect our precious coins. it provides a user-friendly environment, with full-on 24/7 customer support. So here we will discuss how to add money in your bitcoin wallet.
Step-1: First, you will have to buy bitcoins. You need to find someone from whom you can buy bitcoins. You can also purchase bitcoins by using some online platform.
Step-2: The next step is to put them in a wallet so you keep them secure. Now, you will have to choose a wallet according to your preference.
Step-3: Go to the Bitcoin client address. Now, get a Bitcoin address from the “Receive coins” tab. Using a new address for each session will increase your anonymity.
Step-4: Now, Transfer your Bitcoins to the new client. After the transaction, they should appear in your client section.
Congratulations You have entered the very interesting world of cryptocurrencies. Now, you are all set to send your Bitcoin to friends, purchase goods, or send it to exchanges for trading.
Sujit is a Crypto enthusiast and a blogger by passion. He Works for a Crypto news Company Cryptoknowmics. Cryptoknowmics is one of the best companies in this industry because they have the passion to provide users the relevant crypto, bitcoin, and altcoin news today. You can follow him on LinkedIn and Twitter too.