Coinbase allows you to send and receive bitcoins via email. You can also buy bitcoins directly from Coinbase.
Electrum is a renowned bitcoin software wallet respected for its highest levels of security.
Blockchain.info is one of the simplest ways to get a safe and secure online bitcoin wallet.
The Definitive Bitcoin Wallets Guide
What are Bitcoin Wallets?
The term Bitcoin wallet refers to a collection of private keys required to access a bitcoin address in order to enable you to use your funds. In case you’re not aware, bitcoin is in essence a cryptocurrency that allows parties to exchange value. The term is also used to refer to the payment system. So a bitcoin wallet also refers to client software used to manage the private keys and to make transactions on the Bitcoin network.
What’s interesting about bitcoin wallets is that they come in numerous forms and differ depending on the type of device that they are designed for. Since bitcoin is associated with computer devices many people don’t know that you’re even still able to use paper storage in the case that you want to avoid having them on a computer. What’s really important however is that you should be able to back up your wallet and it’s very crucial that you keep it secure. There are several types of bitcoin wallets including desktop, paper, mobile, web, and hardware. Not all bitcoin wallets allow transfers to online gambling sites. If you’re going to be gambling with bitcoins make sure the wallet that you’re using allows transfers to and from Bitcoin Gambling Sites. If they don’t allow bitcoin gambling your wallet could be closed and your bitcoins could be lost. So now you’re probably wondering how it works. Well, if you’re interested to know then please read on.
How does a Bitcoin Wallet work?
To simplify things it’s probably best to address the reasons why you should want to use a bitcoin wallet in the first place. Well, the answer is straightforward: it’s fast, secure and cheap. Although generally used mainly for peer-to-peer transactions, the uses of bitcoin wallets actually extend beyond that. Most people when wishing to store value during times when local currencies are volatile, they tend to use bitcoin since it is considered less volatile which also explains why bitcoin’s value surged in 2016 and 2017. What has really validated this cryptocurrency is the fact that many vendors across the world now accept payments in bitcoins and holders of bitcoins can pay for products and services with them which makes them a modern equivalent of cash.
To set up your bitcoin wallet, think of the process the same way you would set up a bank account. A bitcoin wallet makes it possible for you to receive, store, and send them as well. The most recognized types of wallets are classified as:
- A software wallet – this is a wallet you can install on your computer or mobile.
- A web or hosted wallet – this type is hosted by a third party.
The general consensus is that software wallets can be a bit difficult when it comes to installations and maintenance. The web wallets typically being easier but of course holders are encouraged to use trusted providers. This brings us to the part where we look at the different options available.
What options are available for Bitcoin Wallets?
As previously stated there are several options available from desktop wallets, mobile wallets, online wallets, and hardware wallets which include the Trezor hardware wallet and the Ledger USB wallet. The most recommended wallets include Coinbase which allows you to receive and/or send bitcoins via email. You can also buy directly from them. Electrum is a renowned software wallet that is known for its high level security. One of the quickest way to get a Bitcoin wallet is by simply going to Blockchain.info.