Cryptocurrencies are all over the net at the moment and more people are looking to become crypto traders. One popular cryptocurrency, Bitcoin, is gaining traction, and thanks to lots of sources online people can learn all there is to know about trading with the cryptocurrency.
There are countless articles that teach the basics and lots of apps that simulate a trading market which helps future traders learn their skill better. Regardless of which source you choose, to be a Bitcoin trader you need a Bitcoin wallet.
The Bitcoin wallet is a place that lets you store your Bitcoins. Thanks to the private key no one can access your wallet. It works as a signature that validates all the transactions you make. Additionally, it keeps a history of these transactions.
This key is accompanied by a public key. The public key is useful when you receive money and you can share it with other Bitcoin traders. You can use the wallet to make purchases of services and products, and you can also sell your Bitcoin for any fiat currency. After you do so you have to wait for a few days for the money to be transferred to your account.
This is the simple concept behind the Bitcoin wallet. However, there’s more than one Bitcoin wallet available. Before you choose one you need to get familiar with the variety of wallets out there. Here are some of the different types you’ll run into:
Web Bitcoin Wallets
These types of wallets let you store your private keys on a server that’s owned by a third party. Similarly to the mobile Bitcoin wallets, these let you access your funds from any device with an Internet connection. In other words, web wallets are just as convenient as mobile wallets when it comes to making purchases.
Additionally, this type of wallet will sometimes feature a mobile app. Depending on the wallet it will accommodate either Android or iPhone or both. Either way, with a web Bitcoin wallet app you’ll have direct access to your account.
Naturally, you don’t have to be an expert trader to fill your web wallet. You don’t need any special skills as you can rely on a Bitcoin trading system such as Bitcoinprime.net. The platform does the Bitcoin trading for you. After you register and deposit the minimum amount and you’re all set. There’s also a demo that lets you learn the basics of Bitcoin trading. After that, you can go ahead and start a live session.
Mobile Bitcoin Wallets
This is one of the most common Bitcoin wallets you’ll run into. It’s ideal for those that use Bitcoin on a daily basis to pay for services and products in shops or for some face-to-face trading. These wallets are actually apps you can access any time on your smartphone.
Moreover, they store the private keys that allow you to pay for all kinds of things directly from your phone. To keep things secure, these wallets have payment verification technology. In other words, they rely on blockchain technology to make sure they have the correct information.
Desktop Bitcoin Wallets
Unlike the other two wallets on the list, these ones are downloaded and kept on your hard drive. Additionally, they don’t have to rely on a third party for a server and consequently are more secure to use. However, they still need an Internet connection. If you’re the person that stores small amounts of Bitcoin on your hard drive then these are the wallets suited to your needs.
Hardware Bitcoin Wallets
This is one of the most secure types of Bitcoin wallets as it stores the owner’s private keys on a hardware device. Some of these wallets feature screens which make them more secure as they can verify wallet details. They use open source software and they’re practically immune from viruses. In other words, there are lots of benefits to using a hardware Bitcoin wallet. Some of the top crypto wallets are hardware wallets.
Paper Bitcoin Wallet
This type of wallet is a document with a QR code that contains a public address and a private key. The address is there for receiving money and the key lets you spend or transfer the amount of Bitcoin transferred in the wallet. Naturally, this is all connected to a software wallet otherwise you wouldn’t be able to make a transaction. The best part about them is that the private keys are kept on paper which makes these wallets immune to hacker attacks and various types of malware.
These types of Bitcoin have a certain amount of Bitcoin on them and they can be accessed only via the private key. A tamper-evident seal or sometimes a tamper-evident mark is used to reveal the private key. That’s what makes them secure.