Bitcoin is a cryptocurrency widely used for making business transactions. Cryptocurrency is a digital currency that is very secure and not controlled by any governmental authority. This digital currency is favored by millions of people for many reasons, such as security compared to that of traditional banknotes, and transactions made online require a small or no fee to complete them. In contrast, banks charge a hefty fee for bank transfers. To have access to cryptocurrency, a person needs an active internet connection and a credit card. This makes cryptocurrency more portable than traditional banknotes.
Various types of cryptocurrencies have been launched throughout the years, but the first and most successful one is Bitcoin. Released in 2009 by Satoshi Nakamoto, Bitcoin is the strongest digital currency in the world. As of 2020, 1 bitcoin is equal to approximately 7000 USD. People can work online and be paid in bitcoins; for instance, coinality.com offers to freelance full-time or part-time and payment offered in bitcoins as well as other cryptocurrencies.
A person needs a wallet to hold traditional notes. The same goes for bitcoins, except the bitcoin wallet is stored on the phone as an application, on the desktop as a program, or as a web link. It is accessible everywhere you go. To be precise, bitcoins can’t be “stored” in a wallet or anywhere. Still, a bitcoin wallet or a digital wallet receives and sends bitcoins from and to other users, making the transaction smoother and faster.
Four types of bitcoin wallets are available to users; Desktop program, Phone application, Weblink, or hardware.
Desktop wallets are programs stored on the user’s computer. A disadvantage to a desktop wallet is that it’s not portable compared to the Mobile Wallet Application available for smartphones and tablets. Some mobile wallets are paid, and those types of wallets are the most functional. Since mobile wallets are stored on your phone, you can access the wallet virtually anywhere and make transactions anywhere in the world, with an active internet connection. This makes them more favorable compared to desktop wallets.
Web wallets can work either on a desktop or a mobile, depending on the situation. A consumer may use the web version to save space and for extra security.
The most secure type of bitcoin wallet is the hardware wallet. It’s a solid piece of equipment where the private keys of Bitcoin on them which is connected to a computer or electronic device through USB. While these are very secure, they are also costly going up to 300 USD. Bitcoin wallets store sensitive and vital information, and therefore when choosing a wallet, there are multiple factors a consumer should keep in mind.
The first factor is security. Bitcoin might be safe, but bitcoin wallets sometimes aren’t. If a person opts for a web wallet, they must make sure that the website that they use is very secured. If the website has HTTP, it does not have a secure protocol, unlike websites that have HTTPS. It isn’t the only security protocol consumers should look for, two-factor authentication is critical to enable in whatever wallet a consumer chooses. 2-factor authentication reduces the risk of hackers gaining access to personal bitcoin accounts of users.
One reason why Bitcoin is popular is the fact that when we make transactions, our private and sensitive information is not revealed doing that, whereas swiping credit/debit cards does precisely that. It will make sense if the wallet you choose offers the same anonymity that Bitcoin does. A Bitcoin wallet should only ask for the minimal registration required, which could either be your E-mail or your phone number.
The user interface matters a lot when using a wallet. You don’t want to be in the coffee shop purchasing a cold cappuccino coffee and can not figure out how to make your transaction on the counter! To avoid this, it’s advisable to use a wallet that suits you and has a user interface that’s very easy to understand so transactions can happen easier. This also comes with the type of wallet you want. Whether its hardware, web, mobile, or desktop is entirely up to you and how much accessibility you want with your bitcoins.
At one point in our lives, whether it be our laptop or phone, we’ve broken these electronic devices and lost data within seconds, due to zero backup. With Bitcoins, we must be extra careful about not losing them, so it is smart to choose a wallet that comes with a backup option to make sure no data is lost, either because of hacks or an illegal transaction.
There’s another type of wallet called “Paper Wallet.” It is cold storage and immune to hackers, as the private key and bitcoin addresses are printed onto a paper. It is making the information available on hard copy only, away from hackers. The reason why it is not used much by consumers is its an offline mechanism and not accessible easily. Transactions are not made as quickly with the other types of wallets.There are no wallets for Bitcoin that have all these features. Still, it all depends on which feature you want the most, for instance, insecurity, Trezor had the best security amongst the wallets. Still, the user interface for desktop wallets wasn’t as good compared with Exodus.
This article is intended as a news item to inform our readers of various events and developments that affect, or that might in the future affect, the value of the cryptocurrency described above. The information contained herein is not intended to provide, and it does not provide, sufficient information to form the basis for an investment decision, and you should not rely on this information for that purpose.