When users buy their Bitcoin’s on any exchange, they must immediately store their Bitcoin’s in the “digital wallet”. This wallet is just the collection of addresses & keys that will unlock funds in it. Digital wallet is just like the virtual bank account that allows user to send and receive BTC. They will use this to pay for the goods, just like when buying the car, or saving some money to finance the car. Difference between most of free bitcoin wallets & bank accounts is owner is completely responsible for security of these funds.
There’re different kinds of the wallets that the users will have with the various security levels for all of them. Individuals will be able to select from a wide variety of wallets types that include desktop, web, hardware, mobile, or paper versions.
- The web & mobile digital wallet stores the whole history of your Bitcoin transactions, manages your wallets & initiate transactions straight on a Bitcoin network.
- The users have an option of choosing what works out better for their requirements with various security levels.
- The desktop wallet allows the software to get downloaded & installed on the laptop where users will store the coins & have total control over it.
- There are some trusted web & mobile wallet services where users can keep their funds totally safe.
- There are some hardware wallets that are used today that you can buy easily online.
- Hardware & paper wallets that store the user’s keys offline are considered to be the safe way to store Bitcoin’s.
- Users should keep the printed wallet with the private key details very safe and secure. Once again with the paper wallet there’s nobody to call if you ever forget the pin code and password, lose the private key.
- The paper wallet is one kind of mechanism to store bitcoin’s offline & is made just by creating the brand new address & private key on the paper.
Should you really buy bitcoin?
Bitcoin is one incredibly speculative & volatile buy. It is worth to keep in mind that the stock trading will give you the similar thrill — and choosing stocks of the established companies can prove risky sometimes but investing in the bitcoin will give you a lot of profit in a long run, especially when the rates go very high.