Find out how to create bitcoin-wallet, what is the difference between different types of bitcoin-wallets, and what is the best one to choose for a beginner?
Anyone, who has decided to purchase bitcoin-wallet for the first time, struggles with a question – where is it better to store purchased bitcoins, and how to choose a reliable, handy, and secure bitcoin-wallet?
Let’s have a try and figure out how to create bitcoin-wallet, what is the difference between different types of bitcoin-wallets, and what is the best one to choose for a beginner?
Bitcoin-wallets can simply be divided into two categories – local and online-wallets.
Local bitcoin-wallet is maintained on a user’s device: most often, computer, or smartphone. Sometimes, specialized devices are chosen for this purpose: hardware wallets like Ledger, Trezor, or Keepkey. If you want to create local bitcoin-wallet, you need to download and install specific computer software. If you want to create so-called “heavy” bitcoin-wallet, you will also have to download blockchain weighting a few hundreds G-bytes. Sometimes, the process of “heavy” wallet download may take several days. Luckily, it is not the case of “light” wallet installation.
In case with online-wallet, there are services providing an access to it. These are the following: a particular Internet-service, highly specialized website for bitcoin storage, or cryptocurrency platform, where users can buy, sell, and store cryptos. In physical sense, wallet file is kept on the servers of the mentioned sources. You can manage online-wallet either with the help of client-software program, or Internet browser on the bitcoin holder’s device. If you want to create online bitcoin-wallet, you need to register on a specific Internet-service. Sometimes, you need to complete a confusing verification process. However, there is still a number of services providing bitcoin-wallets after simple registration. It is just right the case of reputable and reliable EXMO cryptocurrency trading platform.
If the user is technically inexperienced, or likely to frequently forget his/her passwords, local bitcoin-wallet is not quite suitable for bitcoin storage. If you forget control phrase to “light” bitcoin-wallet, your bitcoins will be lost forever. By the way, if the “heavy” bitcoin-wallet file is lost due to PC breakdown or crack, bitcoins will be lost as well. The inexperienced user is most recommended to use online-services to keep one’s bitcoins. Here it is important to mention that this service has to be technically reliable, crack-proof, and reputable, of course.
Cryptocurrency platform is a great alternative to bitcoin-wallet. If you take a look at EXMO crypto-platform, you will see that you can not only buy various cryptos on EXMO but also keep them on your platform account.
EXMO is reputable, time-honored, and crack-proof crypto-platform providing convenient interface that can also be used as crypto-storage service. In physical sense, bitcoins are kept in “cold” off-line EXMO wallets making its wholesale theft practically impossible. Two-factor authentication application to secure your account is another major EXMO advantage.
It is meant that whenever you want to manage your account, you need a specific SMS code sent by Google Authenticator apart from ordinary password. The effectiveness of EXMO wallets use is doubtless: you can exchange one cryptocurrency to another, sell, buy, or withdraw bitcoins with a few clicks.
Simply said, bitcoin-address identifies a particular bitcoin-wallet. If you are expecting for a bitcoin-payment (or, you want to withdraw bitcoins), you just need to tell a sender your bitcoin-wallet address. When you send anyone bitcoins, the only thing a receiver will know about this operation is your unique bitcoin-address.
Though every address is linked to a particular bitcoin-wallet, each wallet may have more than a single address. A user can create additional addresses to his/her wallet again and again. Upon that, recent transactions will be sent from the “freshest” address.
Transactions (transfers) within bitcoin system also have their identifiers (id). The identifiers are 64-symbols lines including numbers and letters; every transaction complies with unique identifier (also called transaction hash). Transaction hashes can be applied to search for transaction in any bitcoin-database.
Now it is time to talk about your bitcoin-wallet security.