When you wish to own, buy and sell bitcoins, you will need a bitcoin wallet. It is nothing but a software program, where your bitcoins are stored. Since bitcoins are virtual cryptocurrency they are not physically stored. But every bitcoin user is given a secret number which is a private key to store their balance in the wallet.
Owing this wallet, you will be able to send and receive bitcoins and also you will be able to check your balance. As you store your physical currency in your wallet, your digital currency should be stored in this digital wallet. When you need to transact bitcoins using this wallet, you must know the pubic key of the user with whom you are transacting them.
Coming to its types: There are different kinds of wallets and they are desktop, mobile, web, and hardware wallets.
- Desktop wallets – This type of wallets are installed on a computer, you cannot use this wallet other than the computer on which you have installed it.
- Mobile wallets – This wallet is nothing but an application that you can download on your mobile phones.
- Mobile wallets – These wallets allow you to use bitcoins from everywhere and also using any device and browser.
- Hardware wallets – It is a physical device that is plugged into a computer with the help of USB port.
Because of the bitcoin price, bitcoin wallets are more vulnerable to the hackers, it is extremely important for you to keep your digital wallet safe. So that you can save your public and private address being hacked by the hackers. It is recommended for you to use strong passwords and also change your addresses more often. This way, you could save your cryptocurrency from others.
Hope, you would have gained some knowledge about the bitcoin or digital wallet and its types.