Bitcoin is the most revolutionary digital currency in the cryptocurrency world. It is widely accepted as a payment method to buy or sell almost everything in the present scenario. Hence, their increasing adoption in today’s economy generates the need of storing them at a secure place for an individual’s future usage.
Moreover, bitcoins do not get stored anywhere in physical form so to store them technically we need Bitcoin Wallet. These are just like traditional bank accounts, to send/receive or store bitcoins.
Bitcoin wallets are the combination of public and private keys, which are used to verify both buyer and the seller. Unless the buyer’s public key combines with seller’s private key the transaction could not be completed.
Furthermore, every transaction executed using bitcoin wallets get stored using blockchain technology to make it more secure and transparent. To understand it in a better way we take an example of gift cards offered by mybitcards.com™; while making any transaction (send/receive bitcoins), we need to enter bitcoin wallet address.
Bitcoin Wallet Classification
Bitcoin wallets are of several types; broadly these wallets can be classified into two categories, which are hot wallets and cold storage wallets.
Hot wallets are also known as ‘online storage wallets.’ These wallets are easily accessible through any device which is connected with internet, such as mobile phone, tablets or a laptop. Due to internet connectivity these wallets could be easily hacked or damaged, so these are not recommended for large amount transactions. The beginners, who are trying to test the bitcoin wallets can use these, as they are easy to set up.
Cold storage wallets are commonly known as “offline wallets,” these are the most secure form of bitcoin wallets. These wallets are not connected with the internet, therefore, protecting the wallet from unauthorized access, cyber hacks, and other vulnerabilities are comparatively easier than hot wallets.
Bitcoin wallet Types
Desktop wallets allow users to download and install it on their laptop or personal computer. Using these wallets the user can create a bitcoin address to send or receive bitcoins. Most importantly the user can store the private key in it.
Hardware wallets are the most secure form of bitcoin wallets. The user can purchase bitcoins and store them in the hardware. Now the user can plug it to the PC or laptop and can use it whenever needed. Besides being the safest form, the user needs to protect it from stolen or malicious attacks.
Mobile wallets, as the name, suggests they could be installed over your phone and provide mobility to carry it to anywhere, be it retail store or mall. Despite being a convenient mobile based solution, these are very prone to hacker attacks, once someone gets access to your mobile phone, can quickly get the access of your wallet as well.
Web Wallets could be accessed using any browser through PC or mobile. While getting access to these kinds of wallets the user has to take care of all necessary checks as it stores the private keys over the web. This feature makes it vulnerable to cyber-attacks.
Paper wallet demonstrates a high level of security. These wallets represent the physical form of bitcoin wallets. Using this wallet, the funds shall be trasferred from software wallet to.
These paper wallets keep both public and private keys printed over it, so keeping them in safe custody could be a constraint.
Bitcoin Wallet Usage with Bitcoin Gift Card™
Gift cards have proved to be a successful innovation of this era. It gives the owner a right to buy whatever they want to purchase using those cards. The same methodology has been adopted in the cryptocurrency world as well; Bitcoin Gift Cards™ are the stepping stones in this series.
Bitcoin Gift Cards™ could be a medium of exchange as well as a mode of payment. Using gift card you can possess’ bitcoins. At the time of redeeming these gift cards, you need a Bitcoin wallet to store the transactions.
Bitcoin Gift Cards™ could be purchased from mybitcards.com™ and redeemed using Chainbytes wallet. This wallet enables the user to send, receive bitcoins and redeem Bitcoin Gift Cards™. The design is user-friendly and straightforward, allowing for seamless storage experience and exchange. It’s available for Android and iOS devices at no cost.
To sum up, we can say that the bitcoin and bitcoin wallets are leading the crypto world to the next level. Additionally, bitcoin wallets make it pretty easy to buy, sell and store bitcoins. Five different types of wallets are further decomposed into two main categories of hot and cold storage wallets.
To interact with the cryptocurrency market and trade regularly, hot wallets are the best options as they are highly secured and easy to access your funds . Furthermore, hot wallets are most commonly compatible with a wide range of different mobile devices like an Android device. In contrast to this, if you are looking at cryptocurrency as a long-term play and investment, you should store your private keys within a cold wallet. As it doesn’t connect to the internet, it is much more challenging to hack.