A Guide to Bitcoin Wallets
Why are bitcoin wallets different? If a wallet holds your money, a bitcoin wallet does not hold your bitcoin. 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. You don’t actually store bitcoin in a wallet but if you use a wallet your bitcoin is protected. You can find many different kinds of bitcoins offered but you need to find the right one for you.
If you are going to choose a bitcoin wallet, then you could choose from a mobile bitcoin wallet, bitcoin paper wallet, online bitcoin wallet, and desktop bitcoin wallet.
If you use bitcoins and already have a bitcoin client installed, then you have access in creating a bitcoin wallet and complete transactions. Bitcoin desktop wallets are known for having advanced security levels. A desktop bitcoin wallet is for those who desire high levels of security and are content with the physical limitations of using a desktop for bitcoin transactions.
If you want to have access to bitcoins on the move, then a mobile bitcoin wallet is ideal for you. If you have a mobile bitcoin wallet, then you can simply use your smartphone to pay for your transactions. Another way to pay is to tap your smartphone against a reader. A mobile bitcoin wallet has access benefits.
You don’t have to have a digital bitcoin wallet. Today, another kind of wallet is becoming popular and that is the bitcoin paper wallet which is relatively secure. There are two QR codes for owners of bitcoin paper wallets or offline bitcoin wallets. One code is associated with the bitcoin address and the other codes is associated with your private key. But with offline bitcoin wallets the chances of losing your QR codes is high.
An internet-based bitcoin wallet or an online bitcoin wallet is a digital bitcoin wallet that is not associated with your desktop. An online bitcoin wallet is mostly controlled by third party providers. The third party can control your bitcoin funds. This kind of bitcoin wallet will have your private key stored online. This means that anywhere there is an internet connection, they can access their funds. 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.