What are Bitcoin wallets?

2016-07-10 00:00:00:

The age of technology promises completely new priorities for humanity. This, for example, happens with money. Even 10 years ago, people could not even think about the fact that electronic currency could replace printed banknotes. Almost every person already knows that the Bitcoin cryptocurrency has occupied a colossal niche on the Internet. Moreover, from a tool that ensures the reliable safety of savings in an era of crisis, they gradually acquire the function of a currency intended for everyday monetary settlements.

Although knowledge alone is not enough. Therefore, some virtual network users ask themselves the question of storing money. Various types of virtual purses have been developed to save and carry out transactions. Lets consider what Bitcoin wallets exist.

Bitcoin is a peer-to-peer currency

Bitcoin is the first electronic currency and, in fact, a brilliant invention of Satoshi Nakamoto. Currency has no material embodiment, but even this does not prevent it, along with printed signs, to conquer the market for goods and services. Bitcoins can already be exchanged for the usual currency using special exchange offices that work online. Alternatively, a relatively new, but very reliable resource baksmany.com.

Netizens and those who mine Bitcoins firmly believe that cryptocurrency should firmly enter the life of every person. And in the future, peer-to-peer currency will be able to replace fiat money, of course, if it does not receive a restrictive framework from the state, which in no way can control it. Lets consider what are the Bitcoin wallets and what are their fundamental differences?

What electronic wallets Bitcoin are there?

Digital wallets are exactly like the wallets in which people store their salaries. Taking into account the needs of each person, special storages have been developed, which differ in their functionality, use and reliability.

Electronic wallets are classified into types such as:

"Thick" wallets.
Thin wallets.
Online wallets.
Iron vaults.
It is impossible to say unequivocally that one type of Bitcoin wallet is better than the second. Personal computer vaults are as popular as online wallets.

It doesnt matter what kind of wallet the client wants to use, first of all, you need to register on the appropriate online resource. The procedure itself will not take more than 5 minutes. After completing the registration stage, the client will receive 2 keys: private and public. The network participants address refers to the public key. It is visible to all clients of the virtual network. If you lose such a key, nothing bad will happen.

You will need a private key to complete transactions and confirm transfers. Issued for all types of existing Bitcoin wallets, no matter what category they belong to. It is protected with innovative encryption technology and placed in a special file. This key is generated only once. It is the identifier for the virtual wallet. If the client loses the private key, then he will never be able to withdraw Bitcoins from the electronic wallet.

As you know, stationary wallets have "thin" and "thick" incarnations. Both of these groups work with the help of special software that is installed on the users computer or mobile unit (smartphone, tablet). Answering the question: "What are the reliable Bitcoin wallets", it was practically revealed that stationary purses are the key to safe storage of funds.

If the users computer has enough free space on the hard disk, he can install a "thick" wallet. In this case, all generated keys and the client database will be stored on a laptop or computer.

If the space on the PC is limited, and the network participant has only a mobile unit, he can download, install and use the so-called "thin" type of virtual storage. As in the first case, all created files are stored by the client, but the information that contains the history of money transfers will be stored on a remote server on the global web. However, these are not all types of Bitcoin wallets.

Although stationary wallets are superior to those that work online, the latter wallets have their own significant advantages and, accordingly, their right to use. For example,

There is no need to download software that takes up at least 35 GB of hard drive space.
In order to manage your Bitcoin account, you will need any device that supports access to the global network.
The user of such storages receives hashbacks, various discounts from the resource.
Transfers of Bitcoins between clients of the resource are possible.
What other Bitcoin wallets exist, we will consider below. It is important to note that the insufficiently reliable security mechanism of an online wallet presupposes not too long use of such a wallet. It is not recommended to accumulate a lot of cryptocurrency in such a storage. It is possible that a hacker attack will be carried out on the server, and then the currency may be lost forever.

Hardware wallets for storing Bitcoins, or as they are also called "hardware", appeared relatively recently. From the very beginning, their development was aimed at improving the protection of funds from fraudulent activities from the outside. It looks like an ordinary electronic device. Answering the question, what are the hardware-type Bitcoin wallets, it is important to note that the iron wallet has a USB input for connecting to a personal computer. It is absolutely not susceptible to fraudulent theft of money, even if the client of the network does not have a reliable antivirus installed. The PIN-code (cipher), which is automatically generated when the hardware wallet is first launched, acts as protection. It consists of a large number of words (from 12 to 24). Even a group of hacker-programmers cannot pick such a cipher. The pin code is the only key to this kind of Bitcoin wallet.

Summing up, I would like to say that when choosing this or that type of purse, it is important to weigh the pros and cons and approach this matter with maximum responsibility. After all, the protection of personal savings depends on the choice of a certain option. It should be taken into account that with the growth of the cost of virtual coins, the number of scammers who are hunting for crypto savings also grows.