Ever since their launch in 2008, Bitcoins have become very popular now. Their hold on the crypto market is at least half of the crypto market’s worth. Bitcoins are preferred by people for various reasons. They are easy to use. Do not need to be carried around like currency notes. Bitcoins can be used to make payments to any person, living anywhere, at any time. The transactions are lightning-fast and are not limited by working hours or time slots.
Bitcoins are not governed by one central agency and are thus decentralized currency. The peer-to-peer network adds to the efficiency of Bitcoins. With every passing day, hundreds and thousands of interested people are showing interest to investing in Bitcoins. The trading and exchange in Bitcoins is very easy and can be easily done. For this, one needs a Bitcoin wallet. Now, if you don’t have much information related what Bitcoin wallets are and how they function, read on to know further to have an overall better understanding.
What are Bitcoin wallets? How do they work?
People who are new to this arena sometimes find it difficult to understand what Bitcoin wallets are. Let us discuss briefly everything about Bitcoin wallets that you must know.
- Bitcoin wallets are like ordinary wallets; you have to store your money. However, the primary difference between an ordinary wallet and a Bitcoin wallet is that the latter is only digitally existent. It cannot be touched, felt, or destroyed by physical means. This means it cannot be lost or forgotten in a room like an ordinary wallet.
- Bitcoin wallets are used to store Bitcoins. Whenever you purchase a Bitcoin or more than one Bitcoins, they are stored in your Bitcoin wallet. You can use it whenever you like as per your wish.
- Bitcoins can be accessed through a private key. A private key is like a security key that is needed to access your bitcoins and transfer them to another person.
- The private key is stored by the device that contains your bitcoin wallet.
- There are various types of Bitcoin wallets. Each of them offers different kinds of accessibility, convenience, security, and more.
- You can get a Bitcoin wallet of your choice, depending upon your needs and wishes.
Now that you have a brief idea of what a Bitcoin wallet is and what its purposes are let us discuss how you can get a Bitcoin wallet for yourself.
Setting up a Bitcoin wallet is very easy. Follow these steps to set up your wallet:
- Download the app for the wallet- there are several wallet apps available in the market.
- Create your account- after you have downloaded the app, open it and create your account. In the case of non-custodial wallets, you would not be required to share any personal information.
- Note down your private key- it is important to note your private key and keep it safe in a secure place. If you lose your private key, you will lose access to your crypto as well.
- Add crypto to your wallet- sometimes, you will need to transfer crypto to your funds as it is not always possible to buy crypto directly using ordinary currencies.
There are different types of Bitcoin wallets. Some of the popular types of Bitcoin wallets are:
- Mobile Wallets- mobile wallets come in handy when you need to pay using Bitcoins in ordinary shops for items such as food and grocery. This type of wallet sits in your mobile phone as an app, storing the private key that lets you make payments as and when required.
- Exchange wallets- these wallets store your private key on an online server that is controlled by a third party. Each server offers different services. Like mobile wallets, they let you make payments easily anytime and anywhere.
- Desktop wallets- these wallets are downloaded and stored on your desktop. These have your private keys stored in your hard drive or SSD.
- Hardware wallets- are considered to be the safest wallets because they store your private keys in a hard, physical device.
The Immediate Profit is a great app for trading and transactions in cryptocurrency. You should check it out if you are looking for a convenient platform for exchanging and trading cryptocurrency.