Bitcoin Wallets are nothing but digital wallets. These wallets are responsible for holding private keys which are corresponding to the public addresses given to a user for transactions. Not just that, Bitcoin wallet is a file which provides you with the details of your transactions and also gives you the rightful ownership of your Bitcoins. The Bitcoin Wallet is available as an app for Windows, Mac and Linux in the name of ‘MultiBit’ and for phones/tablets it is run on android as ‘Bitcoin Wallet’.
Types of wallet – there are basically three types of wallets listed below with details –
- Online wallet – online wallets are the simplest and easiest way of getting started. But the only drawback is since the bitcoins are secured by the service providers there is every chance of hacking which would lead to the bitcoins just vanishing. As long as small and manageable amount of bitcoins is maintained in the online wallet it is very simple to handle.
- Smart phone wallet – though it is a very time consuming as well as data consuming process, it provides mobility to users who are constantly using their smart phones for their work. They help the users make use of their bitcoins anytime and anywhere.
- Full featured client – though the installation of the client involves a decent knowledge on computers, this is a very convenient way of handling bitcoins in one’s personal system. It provides security and also it is easy to take backup of the bitcoin wallets as and when required. It provides complete offline transfer of the wallet to protect from malwares.
Every Bitcoin Wallet consists of – keypairs of the addresses, transactions done from and to the addresses, user preferences, default key, version number, and information about the current chain which will help during the restore from a backup. Each Bitcoin Wallet must be properly secured and made sure that for one Bitcoin installation only one wallet is used, trying to reciprocate the bitcoin games in different systems will end up in unexpected results from the wallet.