What Are Bitcoin Wallets?
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.
Bitcoin Wallet Types
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.
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 wallet is another form of a cold wallet and can simply be a QR Code or hand written note with your privacy key on it.
A software wallet exists behind a secure piece of software.
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.
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 and you don’t constantly back them up. It’s not uncommon for individuals to loose Bitcoins in millions when their storage disk crash.