Cryptocurrency received a push with the release of Bitcoin in 2009 and since more than four thousand cryptocurrencies have come into existence. Like fiat currency, a cryptocurrency can be used to make transactions. The difference between them is that a cryptocurrency is digital and not managed by any central authority as it employs decentralized control. Managing and issuing of these coins are collectively handled by the network. For transactions involving bitcoins or other cryptocurrencies, it is necessary to have a bitcoin wallet.
What is a bitcoin wallet?
A bitcoin wallet is, simply, software to store bitcoins. These bitcoins have a private key from which they can be accessed and in the true sense, these wallets hold this information. They are required to store bitcoins and also display other important information such as current rate of bitcoin and other cryptocurrencies, rise or fall in prices, and so forth.
There are many forms of bitcoin wallets; they can be desktop wallets, web, hardware, and mobile. Desktop wallets involve downloading a wallet and running the software through desktops. A web wallet is where online websites provide bitcoin wallet services. Mobile wallets involve downloading an application that is meant to be a wallet whereas hardware is a separate component that can be plugged into a desktop or mobile to access one’s wallet.
What is the best form of wallet to use?
The best bitcoin wallet would depend on how these cryptocurrencies are managed. For someone who prefers strong protection and security, hardware wallets are the best choice. They cannot be accessed directly by anyone and are safer from viruses, comparatively.
For people who prefer easy accessibility, mobile and web wallets are preferable. Desktop wallets can only be accessed through desktops which are affixed at one place. While mobile and web wallets can be accessed anywhere and can easily be employed to make transactions.
Web wallets are indeed better to use as the host websites employ great measures for security and they can be accessed anywhere through the internet. Also, these websites provide the latest data and also hosts various games, lucky draws, and other offers to earn some extra bitcoins.