Everything About What Is A Bitcoin Wallet And How it Work
we asked the question what is a Bitcoin wallet and how does it work to give you guys a better understanding of where to put your precious coins when you buy them with bitcoin. if you have a credit card or use cash in the real world then you probably own a wallet, they’re traditionally leather which you flip open to reveal pockets to hold your credit and identification cards. maybe keys and a space to hold your cash or other long and thin paper items.
So, you already know what a wallet is and essentially what is a Bitcoin wallet. sometimes referred to as a digital wallet is because it’s the exact same concept however instead of being a physical product that you keep in your pocket it’s very sophisticated software that stores your cryptocurrency virtually.
Now, before we delve into the various wallet types, it’s important to tell you guys what a public and private key are as it can determine what wallet you choose. a public key is in the name it’s an alphanumeric address which you provide to the public which they can use to send you coins, whereas a private key is the complete opposite.
It’s the key which you need to keep safe and secure as is the alphanumeric code which allows you to sync points to other people. so if someone else gets their hands on it they could send themselves all of your coins. To own bitcoins or any cryptocurrency you need a digital wallet which there are five types to choose from a desktop wallet, a mobile wallet, a web wallet, a Hardware wallet and a cold wallet.
Desktop wallets as you’d imagine are installed on a desktop computer giving you the user the ability of complete control over that wallet enabling you to create a Bitcoin address for sinning and receiving cryptocurrencies. mobile wallets can be seen as a step up from desktop wallets and the fact that they aren’t fixed to a single location. so unless you’re one of those people in the habit of carrying their desktop around everywhere they go.
A mobile wallet allows you to send and receive bitcoins and other digital currencies anywhere you are in the world as long as you have an internet connection. once you get the wallet app working on your phone properly it works just the same as the desktop wallet where you’re able to completely control that wallet and all your coins inside.
The mobile wallet also allows for a touch to pay capacity by scanning a QR code which allows you to pay for things similarly to Apple pay then there are web wallets these are online wallets you access through a desktop or mobile on a browser like Chrome or Firefox or Safari. it’s essentially the same as a mobile or desktop wallet where you have control over your coins and can send or receive money anytime and from anywhere as long as you’re logged into your account using that same QR code or through account transaction.
Then, there are Hardware wallets, these are basically devices that can hold private keys electronically and create payments but are still in the development phase and have not been released just yet. and lastly, there is cold storage which essentially is an offline method of safeguarding your coins. this is where your coins are on a platform that is never connected to the Internet protecting it from unauthorized access cyber attacks and other vulnerabilities that come with online access. These could be things like a USB stick that is never connected to a computer that is online or it could be a piece of paper.
Desktop and mobile wallets are relatively safe since the key is stored on the actual device so someone would have to physically steal your computer or phone to ever access to that private key using cold storage as the safest method. allowing you to keep your private key completely offline so there’s no chance or ability for outsiders to remotely have access to your private key.
They would need to physically take wherever that private key is stored whereas even on desktop and mobile there are threats of hackers being able to log in to your computer or mobile remotely and have access over your wallet that way you can do cold storage by filing your private key on a USB, stick, CD, hard drive, paper or a computer that never goes online, because the key would never have access to the Internet.
Your key would therefore be 100% safe unless someone physically stole their device that you had your private key on and the least secure way to store your private key is using an online wallet because anyone in the world is able to gain access to your wallet. So, taking all factors into consideration what I would recommend is using a mobile wallet if you’re intending to spend your coins but if you’re not it’s best to use a cold storage method for maximum security, even having a piece of paper and filing it away into a bank vault could be your best option.
So, in conclusion about what is a bitcoin wallet , when you have a wallet you have two keys a public key and a private key. a public key is the key you give people so that they can send you money whereas a private key is your key that you use to send other people money. there are multiple ways that you can store these two keys you can use the desktop wallet a mobile wallet a web-based wallet a hardware wallet.