Since there are so many ways of earning bitcoins, you need your bitcoins to be stored somewhere safe before you spent or exchange them. Getting a bitcoin wallet is a first and most important thing when working with cryptocurrency. Well, technically bitcoins are not really stored anywhere because its a cryptocurrency there is a private key for every bitcoin address that is saved in the bitcoin wallet of the person who owns the balance. If it's hard for you to understand than just consider it as a wallet where your money is stored and you own a secret password to open it.
Bitcoin Transactions
To carry out bitcoin transactions a wallet address is used which looks like this 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2. A wallet address can be generated by your bitcoin wallet for free and without any internet connection. Moreover, wallet address can be generated more than once and every time your wallet will generate a different address. Its safe to generate a new wallet address on each transaction.
Types Of Bitcoin Wallets
There are four major types of bitcoin wallets,
- Desktop Wallet
- Mobile Wallet
- Web Wallet
- and, Hardware Wallet
A Mobile wallet can be considered as a portable version of a desktop wallet. It has the look of a mobile application and the transactions can be carried out anywhere via scanning a QR code. Mycelium and Wirex are some mobile wallets.
Web wallets allow their users to access their bitcoins from any browser or mobile. The user has to be a little bit more careful since all the information is kept online. My favorite web wallets are Coinbase and Blockchain.
Hardware wallets are the most secure form of bitcoin wallets. you coins are stored in a physical equipment which is plugged in a USB port to be accessed. Almost no incidents of theft have been reported with these wallets, that's why these are the only wallets which are not free. Their price normally starts from 100$. Keepkey and Trezor can be considered.
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