Here Is All About Bitcoin Wallet And Why You Need OneDo you want to start trading with Bitcoins? Currently, Bitcoin is the talk of the town. From its discovery in 2009, the coin has proved the doom prophets wrong by continuing to gain value unbelievably. Also, the coin set the pace for evolvement of altcoins opening a new chapter on the virtual trade. As an investor or entrepreneur seeking to join the cryptocurrency trail, you require a Bitcoin wallet. View more
What is a Bitcoin Wallet?
A Bitcoin wallet can be likened to a bank account used for receiving, storing and sending Bitcoins. Given that there is no regulatory or intermediary in the blockchain trading, your wallet helps you to keep your Bitcoins in safe custody. You have two forms of Bitcoin wallets.
The first type is software-based wallets. This category involves installing software on your PC or mobile device you prefer for storing your coins. The second type is a cloud or web-based wallet where you host it in a third party. Software wallet is more secure compared to cloud-based one as your Bitcoins cannot be stolen easily.
Now, how do you open a Bitcoin wallet? Here are the steps:
a) Download Bitcoin software from a reputable and legit site
The first step of creating a wallet for transacting Bitcoins is downloading the wallet software. However, you need to be conscious about selecting the site to obtain your software. Due to the rising Bitcoin value, fraudsters have developed fake wallets software. Once you download this software, your Bitcoin is stolen, and you lose them. Also, such software helps the fraudster to facilitate cyber-crimes through obtaining personal information from your computer.
b) Installing your wallet software
Upon downloading the software, now you need to install it on your device. The process is similar to any other software or app installation. You simply need to click on the downloaded files of your PC browser and initiate the installation process. Should you use a mobile device, the installation will be automatic upon completion of the downloading process. Once you are through with installation, you will be ready to start transacting with Bitcoins or other cryptocurrencies.
Why do you need a Bitcoin Wallet?
If somebody asked you why do you need a bank account, what would you say? The first reason you will state is it will help you to store and secure your cash. Similarly, as there are no banks for Bitcoins, Bitcoin Wallet is like your home banking container. You use it to store, send and receive the coins. As such, it is not possible to transact Bitcoins or altcoins without the relevant wallet.
Accordingly, a Bitcoin wallet has two phases the public key which is visible to everyone and the private key which remains in your custody. The combination of the two keys is what complete transaction in through the cryptographic process. For this reason, if you want to secure your treasure, you must obtain a wallet.
Otherwise, sites such as Coinbase and Kraken offer you an opportunity to transact without having a wallet. However, you should know that you do not own the Bitcoins if you do not have a personal Bitcoin wallet. Notably, most people transacting Bitcoins without a Bitcoin wallet have lost their hard-earned treasures. So if you want to join the club, then ignore the wallet.
As you can see, a Bitcoin Wallet is a fundamental tool when venturing on the new virtual gold ore. The wallet helps you to send, store and receive Bitcoins and altcoins. Also, for your coins to be secure from third parties and online criminals, it is recommendable to store them in a software-based wallet.