A Bitcoin wallet is a web service that stores and manages your Bitcoins and address details from a remote location. Since such websites run on instances of Bitcoin software, you can access your wallet online without necessary having to first install Bitcoin software on the device you’re using. This way, you can use your mobile device, a computer in the local cyber and other suiting platforms.
[thrive_accordion_group title=’Bitcoin Wallet Types’][thrive_accordion title=’Web Wallet’ no=’1/5′ default=’yes’]Web wallets are the most convenient type of wallet simply because you can access your funds from any device connected to the internet. They are any online storage medium that can hold your bitcoins such as PC’s, Mobile phones, websites etc. [/thrive_accordion][thrive_accordion title=’Cold Wallet’ no=’2/5′ default=’no’]A cold wallet is by definition is any wallet that is not connected in any way to the internet. It can exist on any type of memory device such as a USB Key or SD Card provided it is not plugged into a networked computer or laptop. A paper waller is another form of a cold wallet and can simply be a QR Code or hand written note with your privacy key on it. [/thrive_accordion][thrive_accordion title=’Software Wallet’ no=’3/5′ default=’no’] A software wallet exists behind a secure piece of software.[/thrive_accordion][thrive_accordion title=’Hardware Wallet’ no=’4/5′ default=’no’] This is one of the newer types of wallets. They can only be access with physical contact from a hardware device in order to make a transaction. [/thrive_accordion][/thrive_accordion_group]
How Do You Create Your Own Bitcoin Wallet Online?
Creating a Bitcoin wallet is fast and simple. However, make certain that your internet browser is secure before proceeding by following Bitcoins secure practices.
There are three ways that you can create a Bitcoin wallet: on your mobile device, your desk top computer and on the web. Of the three, the web option is the best. It’s secure. It’s accessible on multiple platforms. You won’t risk loosing data if you loose your mobile device or when your hard disk fails.
Simply open an account with Bitcoin and provide a strong password. You won’t be able to change the password once you’ve created it. Attach an email address since it will be vital when you’re backing up data. This way you will have created your e-wallet and ready to start transacting.
Why use bitcoin wallet?
- It’s a secure mode of transacting online since users aren’t required to submit personal details-passwords, emails and usernames.
- Since few details are required when creating an e-wallet account, the set up process is pretty simple and fast.
- You can access your account balance by simply checking with the block chain-which shows transactions successfully completed.
- A Bitcoin wallet comes with private key’s for secure transactions. To add to this, you can transfer your key between accounts provided the wallet code and associated data.
- Transaction fees are low in comparison to other platforms. No credits cards are required.
What are the risks of using Bitcoin Wallets?
Though modern Bitcoin wallets are largely secure through encryption and provisions of private keys, they’re still subject to manipulations. For starters, if another Bitcoin user has access to your private keys, they can spend your Bitcoins. Secondly, if wallet service providers compromise on adyou don’t constantly back them up. It’s not uncommon for individuals to loose Bitcoins in millions when their storage disk crash.
As easy as it is to move money across the internet using bitcoin, there are risks associated with it. It is possible for malicious people to violate your privacy, track your spending or worse, steal your money. Fortunately, there are some bitcoin security measures that you can use to protect your precious digital currency and your spending habits from being displayed to unauthorized persons. Some very useful ones are as follows:-
Have Separate Wallets
Ensure that the spending wallet is not the same one that has all your bitcoin holdings because all your savings will be vulnerable to various types of infiltration. Since there is no limit to the number of bitcoin wallets one can have, take advantage of this and have several for your own security.
Avoid Keeping Your Savings In A Web Wallet
There have been increasing cases of hacking of web wallets. As much as these web wallets are convenient, they should only be used as the place to put small amounts of money that you will use after a short time. Keeping only small amounts for spending in your web wallet will ensure that you don’t suffer a great loss when it gets hacked. Know that bitcoin is very different from a credit card and in case you ever lose money through fraud, there are very minimal chances of getting it back.
Guard Your Privacy
Avoid sharing your private keys with anyone. This is because you will allow them to know the amount of bitcoins that you have. This is a private matter and you should never provide any personal details for anyone to guess what you have in your wallet. Take measures to ensure that your spending isn’t tracked by keeping personal information a private as possible. Make sure there is no connection between your wallets by for example using a mixing service to transfer funds between them. This will make it harder for hackers to violate your privacy.
Consider Cold Storage
Consider keeping your wallet’s private key in an offline storage medium for adequate protection. It could be a plain text file stored in a USB key or simply a QR code printed on a paper. For any bitcoin transfer to take place the QR code has to be scanned or the private key has to be manually entered into the application. You could also encrypt your private keys as an additional security measure so that in case someone discovers them, they simply can’t use them without your password.
However, don’t ever save your bitcoins in a wallet that is stored in your computer because you are still highly susceptible to an attack like a Trojan horse attack. The attacks occur frequently because the bitcoin wallet applications usually store their data in predictable locations.
There are more bitcoin security measures you can employ but with the above security measures, you can have a safer bitcoin experience and avoid the unfortunate event of someone tracking your spending and stealing your precious hard-earned bitcoins. This will save you a lot of frustration and loss.
Hello and welcome to my new and exciting blog where I will discuss the various ways to make money with bicoin! This exciting new digital currency has already made both rich men poor, and poor men rich with it’s meteoric rise in price, followed by it’s immediate tumble after troubles with the Silk Road scandle, and then the problems MtGox was having!
We will teach you the most popular ways to try to make money in the bitcoin industry including the two most popular methods which are mining bitcoins, and trading bitcoins. We will also cover some cool stuff like automated trading bots which are a great way to make some extra coin with the digital currency as well as bitcoin alternatives!
These are very exciting times at hand and the worlds financial systems are literally crumbling around us. Bitcoin and other online currencies alike offer up a prospective way to trade goods and services without the need for giant financial organizations and world banks.
Bitcoin has remained strong on most exchanges, even in the shadow of insane speculation about it’s future, which I do believe is a very good sign!
So we’ll be covering lots and I hope you stick around to learn about it!