How Bitcoin wallet works?

 



Bitcoin is the top cryptocurrency which came into existence in 2009. Through it, transactions are made with no mediator or banks. Bitcoins are useful to buy merchandise anonymously in an exchange organized market. It makes international payments easier and cheaper because Bitcoins are not confined to a particular country or subject to regulation. Since Bitcoin is a digital currency, they can’t be stored in any physical shape or form. Private keys enable an easy access to your public Bitcoin address and transaction signatures. 

A Bitcoin wallet is also called as a digital wallet. It is important to maintain a crypto wallet in order to trade in Bitcoins. The Bitcoin wallet works in a similar manner as a physical wallet with a difference that instead of storing physical currency, the wallet stores useful information like a secure private key. Bitcoin wallets are beneficial to send and receive cryptocurrency as per the Bitcoin protocol. The wallets resemble software programs to interact with the Bitcoin blockchain and proceed with value transactions globally.

All Bitcoins are present on the blockchain which you don’t actually hold. Instead, you own the mix of keys that help to access the top cryptocurrency and move it around. Your brought Bitcoin is safe with the associated keys. Hence, it is crystal clear that the combination of public and private keys create the concept of a Bitcoin wallet.

Some ways to safeguard your crypto wallet include protecting your wallet with a strong password or choosing a cold storage option( storing bitcoin offline).  The different forms of bitcoin wallets differ in terms of their convenience, security, accessibility and cater to various requirements. Desktop, mobile, web and hardware are four types of bitcoin wallets.

Desktop wallet provide the user with computer control and work as an address to send and receive Bitcoins. Private key are also stored through it. Mobile wallets serve the same purpose as desktop wallets. Web wallets enable bitcoin exchange from anywhere, through browser or mobile device. The most secure type of Bitcoin wallet are hardware wallets. Through it, bitcoins are stored on a physical piece of equipment which are plugged on a computer via USB port.

Click here to know more about Bitcoin and cryptocurrency.

Comments

Post a Comment

Popular posts from this blog

CFA V/s CA

Image
  CFA (Chartered Financial Analysts)  and CA (Chartered Accountancy) are two important courses in finance domain. Both are excellent courses and unique in their own way. Choosing a professional certification between both courses is dependent upon your interest and qualification. To decide which course to pursue, one should know all about CFA and CA in terms of courses, advantages.  CFA certification or Chartered Financial Analyst is a program conducted by CFA institute, California.  The program aims to provide professional training and education in the field of finance and investment analysis. To avail the CFA certification, one must pass three levels of CFA examination. CFA is a globally recognized certification program. The average salary package for a CFA charter holder is 12,00,000-20,00,000. Some of the common job profiles for a CFA charterholder include portfolio manager, consultant, investment analyst, strategist, wealth manager etc. CA or Chartered Accountancy is a certified qu
Read more

What is CFA Course all about?

Image
CFA stands for Chartered Financial Analyst. It is a globally-recognized professional certification program that gives a strong base to students in the field of finance. It is considered gold standard in finance. Students and professionals who are willing to make their career in investment banking, equity research, capital market, portfolio management, corporate finance etc., should pursue  CFA course . CFA program  is conducted by CFA institute. The institute was established in 1947. The CFA course has come up as the top qualification in investment industry. The main requirement to become a CFA charter is clearing all three levels of the CFA exam and meeting relevant work experience requirements. The exam covers important topics for investment industry such as equity, fixed income, private equity, derivatives and real estate. If you want to receive top quality investment education, then getting a CFA certification is the best career choice for you. This is one of the most reputed desig
Read more

CFA Mock exams and practice questions

Image
  Someone very rightly said- “a dream doesn’t become reality through magic, it takes sweat, determination and hard work.” Earning the global finance designation isn’t an easy path. It takes a lot of passion, determination, hard work and diligence to become a chartered financial analyst.  CFA course  regarded as the highest distinctions in the investment management profession equips one with the appropriate skills and expertise required to survive in the domain of finance. To hold the CFA charter, one must pass all three levels of CFA exam. Preparing for the CFA level 1 exam requires thorough study and perseverance. To ease the process of preparation, CFA Institute, California, provides mock exams and practice questions. CFA mock test are an important way to be acquainted with the format and data of the exam. It enables one to know the topics to be studied, prioritize the time to be given for each question. Attempting more CFA practice questions and mock tests helps one become more comf
Read more