This article will explain how to get a Bitcoin wallet but also how they work and how to use Bitcoin wallet. As cryptocurrencies are on the rise and many new crypto-traders join in the movement every day, how to store coins securely and in a convenient way is becoming an increasingly important concern for many.
Q: How do Bitcoin wallets work?
A: First of all, please do note that not any wallet can accept any kind of coins. Wallets operate with specific tokens only and trying to send the wrong coins or tokens to a wallet would either result in the coins being lost or the wallet rejecting the transaction.
Bitcoin wallets are applications used to communicate with the blockchain network and tell it that you want to send or receive transactions. The coins or tokens are never physically in your wallet but rather always kept secure on the blockchain.
Wallets send or receive authorization to change said tokens addresses from the blockchain and these transactions are a one-way-street, so be careful who you send it to!
Wallets have two sets of keys the public key and the private key. The public key can be linked to the public address you send everyone to say receive an email from Gmail or receive money from Paypal as in you need to send it out to the world to receive incoming transactions and it is safe to do so. Private keys, on the other hand, are what you must protect at all costs as, like passwords, it can be used by anyone having them to send out transactions in any fashion they want and send your coins away.
Q: How to use Bitcoin wallet?
A: As previously mentioned, Bitcoin wallets and other crypto wallets have two components, namely the public and private keys.
Public keys act as the receiver and need to be sent to those who will send coins to the wallets. They can be linked to how an email address work as in they need to be sent to others in order to receive any email but send them do not compromise the security of your account.
Private keys, on the other hand, need to be kept safe as they grant administrative rights over the account and allow for the sending of transactions. They act much like passwords do as once someone holds both public and private key they can fully control the account in any way they want.
To deposit money on, or receive money to an account simply send out your public key to the desired transmitter. And to make a payment or send some money to another wallet please use your private key.
Please do note that this works for personal wallets, while exchange wallets would instead require you to input the password you have on the exchange with potentially some 2FA.
Q: How to get a Bitcoin wallet?
A: There exist two main types of Bitcoin wallets, namely hot and cold wallets.
Hot wallets can simply be downloaded or installed directly from your phone or computer. Examples are desktop, mobile, and online wallets. These wallets are easy to find, are mostly free, and can be set up in a few minutes but have less security than their counterparts.
Some example of hot wallets would be Bread wallet, Mycelium, and Copay.
Cold wallets are much more secure than hot wallet at the expense of practicality or cost; they come in two variations paper and hardware wallets. Paper wallets are just that, a piece of paper on which you write your private key; they are generally not very convenient and easily lost but are a possible alternative to other most expensive wallet types. Hardware wallets are a piece of equipment, much like a USB, which stores your private key and that simply needs to be plugged in to confirm transactions. These hardware wallets could cost anywhere between a few dozen dollars to several hundred dollars depending on their technological requirements and practicality of use. Some examples of Hardware wallets would be Trezor, Ledger Nano, and Opendime.
This concludes today’s article about how to get a Bitcoin wallet, we hope you enjoyed the read, learned a lot about Bitcoin wallets, how they work and how to use them. Stay tuned for more great content.