Lessons Learned About Currencies
What Bitcoin Wallet to Choose
Why are bitcoin wallets different? While real wallets contain our money, bitcoin wallets do not actually contain bitcoins. You don’t have to open your bitcoin wallet to accept coins because all your bitcoin is stored in the blockchain shared records.
The only time your bitcoin gets stored in your wallet is when you sign your bitcoin transaction with your private key. When you are doing bitcoin transactions, you use a private key associated with the address that you bitcoin wallet creates for you. Bitcoins are not actually stored in a wallet but if you use a wallet then your bitcoin is protected. You can find many different kinds of bitcoins offered but you need to find the right one for you.
The types of bitcoin wallets to choose from including mobile bitcoin wallets, bitcoin paper wallets, online bitcoin wallets, and desktop bitcoin wallets.
Using bitcoins and having a bitcoin client installed gives you access to create a bitcoin wallet and complete transactions. You benefit from advanced security levels of desktop bitcoin wallets. If you are content with being physically limited by your desktop and want high levels of security, then you can choose a desktop bitcoin wallet.
If you are on the move and you want to have access to bitcoins, then you should get a mobile bitcoin wallet. If you have a mobile bitcoin wallet, then you can simply use your smartphone to pay for your transactions. You can also simply pay by tapping your smartphone against a reader. The benefits of easy access is found in mobile bitcoin wallets.
If you don’t want a digital bitcoin wallet, then you don’t have to. You can go for bitcoin paper wallets which are relatively secure and also becoming popular today. If you use a bitcoin paper wallet which is also called an offline bitcoin wallet then you have two QR codes. The bitcoin address is one code and the encrypted private key is the other code. But with offline bitcoin wallets the chances of losing your QR codes is high.
You can choose an internet-based bitcoin wallet or an online bitcoin wallet if you want to have a digital bitcoin wallet but you don’t want to host your wallet on your own desktop. An online bitcoin wallet is mostly controlled by third party providers. So someone else is involved in controlling your bitcoin funds. An online bitcoin wallet’s private key is stored online. This means that funds can be accessed anywhere there is internet access. You can link your online bitcoin wallet to mobile and desktop bitcoin wallets. The problem with online bitcoin wallet is the involvement of third-party handling. With internet connection, online bitcoin wallets work well and you can easily get funds anywhere.
Consider the different kinds of bitcoin wallets and decide for yourself which among them best satisfies your needs.