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What are Bitcoin Wallets: Everything You Need to Know

Bitcoins are digital currencies, and you can’t store bitcoins in your wallet like you store other currencies. Bitcoins can’t be stored physically anywhere. You can’t store bitcoins in a bank vault or under your mattress.

To store bitcoin wallets, you need a bitcoin wallet. The bitcoin wallets are accessible by using private keys. Thus, you will need a set of digital keys for entry. Thus, the security of bitcoins depends upon the security of keys.

This article will help you to know all about bitcoin wallets.

Every Bitcoin has two major keys. The first one is called the public key, and the other one is called the private key. Bitcoins are derived from public keys. Sharing bitcoin is like sharing your email address with a person.

If you have sent an email to someone, they can check your email, but they can’t take a look into your inbox. In the same way, no one will be able to get entry into your bitcoin wallet.

Before you choose any bitcoin exchange to help you provide access to a safe and secure bitcoin wallet, it is important to check the credibility and license of the company.

Different types of bitcoin wallets are available, and we will provide you with complete information just like website so that you can choose the best wallet.

Types of Bitcoin Wallet

Hardware Wallets

Hardware wallets are the safest option to protect ownership over bitcoins. The name of the hardware wallet is derived from the sense that it takes the form of a physical device that protects the key that holds the bitcoin. The hardware wallets are considered as a safer wallet option as compared to other wallets.

Since the wallet is not connected to the internet, it removes any chances of getting hacked by hackers or spammers. Most hardware wallets generate keys within the wallet to remove any kind of risk of theft.

Paper wallets are also a type of physical wallet, but they lack the best security aspect. The paper wallets have a private key, a bitcoin address, and a QR code that is printed on a piece of paper. But, the physical wallets like paper wallets are recommended to use as the keys can be easily generated by a third person. Thus, users need to take extra precaution when they are using the paper wallet.

Software wallets

The software wallets are mostly used these days to keep the bitcoins safe. Software wallets are any form of wallet that can’t be converted into a physical format. The software wallets can exist in all kinds of computers and laptops. These are pretty convenient to use, and most bitcoin investors and traders are using software wallets to store their bitcoins safely.

The best part about the software wallet is that it can also be used via mobile phones. The software wallets are safe as they use encryption to keep the bitcoins safe. If you are using a software wallet, make sure that it is developed in a peer-reviewed and open-source manner. The wallet should also be developed by a reliable programmer and organization.

Since the software wallets are connected to the internet, and they are used digitally, they are not as safe and secure as the hardware wallets. The advantage of software wallets is that they are pretty easy to use, and you won’t face any issues while sending or signing the bitcoin transactions.

If you want to store your bitcoins safely and securely for an extended time, it is advisable to not use the software wallet. For storing bitcoins for a long duration, a hardware wallet with no connection to the internet is a preferred option.

Which bitcoin wallet should you use?

When it comes to choosing a bitcoin wallet, you should have complete knowledge and understanding of all kinds of wallets. The choice of a bitcoin wallet is entirely dependent on your personal choice.

Thus, if you are looking for a bitcoin wallet that can be used for day to day transactions, the software wallet can be one of the best choices. But, if you want to store bitcoins for an extended period, it is advisable to go for the hardware wallet as they are not connected to the internet.

Let us know about your views on bitcoin wallets.