Luno Bitcoin

What is Bitcoin Wallet?

 

If you want to withdraw you need personal Bitcoin address to receive payments. Remember that the address must be unique. You may consider the working of this BTC address as your email such that anyone can send bitcoins to it. A program named as Bitcoin Clients serves the users having bitcoin addresses and facilitates the similar as like your email programs. To log in to your BTC Client, you are required to enter your BTC address and the unique matching most private key. However, for multiple bitcoin addresses, you can use the same most private key just like you use the same emailed password to access multiple emails addresses.




Now, it might strike your brain for what Bitcoin wallet is. These are the aforementioned details that are stored in your BTC wallet. If you learn your address and private key by heart, then your brain can be called as bitcoin wallet in this case. No matter what kind of wallets you use, keeping those small pieces of information safe and secured is of great significance.




Still, in case, you doubt how safe the wallets are, you must know that it ultimately depends on the way you manage and handle your BTC wallet. The private key should strictly not been known to anyone else so that you never lose any of your bitcoin price. Clearly note that the private key is the only way to access your bitcoin address and carry out your transactions.






Following are a few ways through which you can be secure your Bitcoins wallet:

Since the wallets have an online existence, hacking is ON for it. In order to combat the hacking risk, you have a choice to switch to Cold Storage Wallets. These store private bitcoin keys offline, protecting them from getting stolen by a hacker on the Web.

You may even fear of your wallet getting corrupt or mislaid. In such case, keeping a back up of your wallet is strongly advised so that you have secured copies of the private key.

Another method is to encrypt your wallet with a password. However, it is not that safe too since, once your encrypted password is revealed, even then your wallet can be accessed by others.

It's interesting to note that the bitcoin wallets come in various forms for different kinds of devices where they are stored. Below are the four types of wallets widely in use: