Guide: How to create your Bitcoin wallet: Check out the complete guide here!
What is a Bitcoin wallet?
A Bitcoin wallet (or digital wallet) is software that stores public and private keys for people to interact with the Bitcoin network (Blockchain).
Who should have a Bitcoin wallet?
If you plan to use or have Bitcoin, you will need a wallet. With the wallet, you can receive, transfer and monitor your balance. This is something common to the others cryptocurrencies, if you plan to use them, you will probably need a wallet.
How does a Bitcoin wallet work?
Unlike the physical wallet analogy, the Bitcoin wallet does not store currency.
Think of the network Bitcoin like a database of transactions spread over computers around the world in a decentralized way - even your computer can be part of that network if you want. Each record in this database contains a source address, a destination address and an amount of bitcoin to be transferred.
Everything is based on a pair of keys (files containing unique strings of characters). The public key is publicly accessible to compose your address, the private key is the one that guarantees ownership of your balance. So, if someone sends bitcoin to your address, you can only spend it if you have the private key.
The private key must be kept well or you will lose access to your bitcoin funds. Most of the time, the choice of your wallet type should be based on how you want to store your private key and make transactions on the network.
Types of bitcoin wallets
- desktop: wallets that you can install on your PC or Mac. That way, you have absolute possession of your private key. The only security breach is a hacker attack on your computer;
- Mobile: in the form of an application for your smartphone. Has the same security risk as desktop wallets;
- Online: they are very practical and work in a similar way to any Internet service - like Gmail or Paypal. Your private key is stored on a server in the cloud and you have access to your account using a username and password. Security is up to the service provider, if your servers are hacked, you will be affected. If you are not an advanced computer user and do not have a large Bitcoin balance, this is probably your best choice;
- Hardware: are devices that store your private key completely offline. Generally, they have a USB connection that, connected to the computer, allow to execute transactions on the bitcoin network. This type of wallet is extremely safe, but it is necessary to pay some money to buy this device.
Popular bitcoin wallets
Blockchain.info
Type: Online.
Descriptive: blockchain.info is an extremely popular wallet service for Bitcoin and other services related to Blockchain technology.
Access Blockchain.info
Coinbase
Type: Online
Descriptive: in addition to a wallet, it also allows buying and selling bitcoin on the same interface. It has several layers of security and offers insurance in case of hacker attack. This company was recently valued at $ 1 billion, being the first to reach that value in the bitcoin segment. It also offers you a wallet Ethereum e Litecoin next to your account.
Access Coinbase
Armory
Type: desktop
Descriptive: in this wallet everything is stored on your computer and you need to install it to use it. In addition, it is open source, allows even printed backup and several layers of security to protect in case of attack. It is very popular with the most advanced users.
Download Armory
Ledger Nano S
Type: Hardware
Descriptive: a hardware device to call from your wallet. The Ledger Nano S is like a pen drive, the user still needs to enter a PIN to use the wallet. It is not officially sold in Brazil, but there are many offers on MercadoLivre.
View Ledger Nano S on MercadoLibre
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