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A Guide to Bitcoin Wallets
What is a bitcoin wallet? While real wallets contain our money, bitcoin wallets do not actually contain bitcoins. Bitcoin wallet does not have to be opened to accept coins because bitcoins are stored in blockchain shared records.
Signing your bitcoin transaction with your private key gets your bitcoin stored in your wallet. Your bitcoin wallet creates an address for you so you have your own secure key which you can use to complete bitcoin transaction. A wallet protects the use of your bitcoin even though you don’t store bitcoins in a wallet. You can find different kinds of bitcoin wallets offered but you need to find the right one for your needs.
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.
You can create a bitcoin wallet and complete transactions if you already use bitcoins and have a bitcoin client installed. You benefit from advanced security levels of desktop bitcoin wallets. 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.
A mobile bitcoin wallet is for people on the go who want to have access to bitcoins. 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. You benefit from easy access with a mobile bitcoin wallet.
You don’t have to have a digital bitcoin wallet. There are bitcoin paper wallets which are also popular and relatively secure. If you use a bitcoin paper wallet which is also called an offline bitcoin wallet then you have two QR codes. One code is associated with the bitcoin address and the other codes is associated with your private key. If you own an offline bitcoin wallet, there is always the chance that you could lose you QR codes.
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. You have your private key stored online if you have this kind of bitcoin wallet. If there is internet connection, then if you have an online bitcoin wallet, you can access your fund anywhere. There are online bitcoin wallets that can be linked with mobile and desktop bitcoin wallets. The problem with online bitcoin wallet is the involvement of third-party handling. But then, it is very helpful to be able to get funds whenever there is an internet connection.
These are the different types of bitcoin wallets, and you should consider them all carefully so that you can find the best one for your needs.