As you may have guessed already, Bitcoin wallets are storage locations for your Public and Private keys. These keys are the proof that you actually own the amount of Bitcoins that exist on the decentralised Blockchain of respective Cryptocurrency
Public Key is used if someone wants to send you BTC. You will provide your public address to the sender and then the sender sends the bitcoins to your address.
Private Key is used if you want to send your BTC to other person's address. NEVER REVEAL YOUR PRIVATE KEYS TO ANYONE !! As the name indicates, they are private and nobody should have access to your private keys except you.
If your private keys are compromised, then anyone can steal you bitcoins belonging to that address.
Bitcoin Wallets are specially designed to store your keys and only you can have access to them.
There are types of wallets for cryptocurrency :
Virtual Wallets / Software Wallets:
These type of crypto wallets are online. We can sign up for wallet providing services (websites or apps) and they will create a wallet for us. Although it is safe to use virtual crypto wallets, these are considered to be less secure when compared to Hardware wallets.
Check out the list of top Software Wallets available
You will be given a sentence of 12 words which helps you to recover your access incase you forgot/lost your password or credentials.
Hardware Wallets:
These are dedicated physical devices which are designed to store Cryptographical Keys. Hardware Wallets have strong encryption mechanisms which ensure top level security for your keys.
Check out the list of best Hardware wallets available for purchasing
Hardware wallets typically come in the form of a pendrive shaped devices.
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Hardware Wallets |
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