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Category Archives for "Bitcoin Wallet"

May 14

How to secure your Bitcoin Wallet?

By Admin | Bitcoin News , Bitcoin Wallet , Bitcoin Wallets Online , Crypto Currency News , The Crypto Wealth Formula

How to secure your Bitcoin Wallet?

Investing in Cryptocurrency or Cryptocurrency trading might sound really exciting. The hot buzz that Bitcoin has created is driving in many investors for cryptocurrency trading. People are buying Bitcoin wallets which allow you to send and receive the Bitcoins, thus enabling trading and other related transactions in cryptocurrencies like Bitcoins.

With the entire buzz around, comes a list of measures that one needs to adopt in order to carry out secure transactions in cryptocurrencies.

Bitcoins are completely different from the other traded stocks in the share market. Before you start trading in cryptocurrencies using the Bitcoin wallet, you need to choose the type of your Bitcoin wallet wisely from the different types of wallets available, based on your requirements. It is highly important for one to take appropriate steps that are required for the security of his or her Bitcoin wallet.

Bitcoin wallets are highly vulnerable to security issues, hence one need to adopt all good practices that will help secure money stored in the wallet.

Secure your Bitcoin Wallet

So how do you secure your Bitcoin wallet?

Below listed are some of the security measures that will help you secure your Bitcoin wallet –

  •   Keep small amounts –

It is advisable to have smaller amounts of Bitcoins in your Bitcoin wallets. More the number of Bitcoins, greater the loss! Hence it is advisable to keep small number of Bitcoins in the Bitcoin wallet and the rest in a safer environment.

  • Back up Bitcoin wallets –

Online Bitcoin wallets are prone to data loss issues, computer failures and other common types of human mistakes, hence it is highly recommended to back up the Bitcoin wallet. A backup of the wallet will be handy in case of theft of computer device or mobile phones. It is a good practice to regularly back up the Bitcoin wallet if the user is highly active and has frequent cryptocurrency trading transactions.

  • Encrypt Bitcoin wallets –

While storing offline Bitcoin wallets or back-up copies of Bitcoin wallets, it is highly recommended to encrypt the Bitcoin wallet files. This will prevent unauthorized access to the Bitcoin wallet.

How to secure your Bitcoin Wallet?

  • Use offline wallets –

For a trader who is more of an investment person in cryptocurrencies, it is highly recommended to go for cold wallets also known as offline wallets. These are less vulnerable to the risks that are associated with an online wallet.

  • Enable the 2 factor authentication –

With security being the utmost priority, all Bitcoin wallet apps are allowing the 2 factor authentication. This can be in the form of a finger print or a 6 digit code that is often updated regularly. This two factor authentication for your online wallets is a highly secure practice to follow.

  • Change wallets –

Yes, this might sound contradicting but it is highly recommended to change the Bitcoin wallets as a whole during regular intervals. Doing this will prevent the wallet security from getting vulnerable.

In spite of carrying out various security measures, there are lot of Bitcoin wallets that are prone to security issues, loss of data, malware attack and so on. Unfortunately, there is no magic wand that will entirely protect the Bitcoin wallet from financial crisis. But in order to protect your financial digital assets, one needs to ensure that all components of the system are equally protected and interact in a secure way by all means.

May 14

Bitcoin Wallets Online

By Admin | Bitcoin News , Bitcoin Wallet , Bitcoin Wallets Online , Crypto Currency News , The Crypto Wealth Formula

The Bitcoin wallet buzz

Just like digital e-wallets that are available online, you will find cryptocurrency Bitcoin wallets as well. Bitcoin wallets are of different kinds with different functionalities and characteristics. Bitcoin investment and trading transactions are different from the other stock market trading transactions; hence it is highly important for one to choose their Bitcoin wallet wisely. There are a number of security measures that one needs to know and understand before buying Bitcoin wallets online.

Bitcoin Wallet Online

The different Bitcoin wallets

There are a number of Bitcoin wallets that come in different types with different characteristics and features. The different types of Bitcoin wallets include:

  • Desktop Bitcoin wallets
  • Mobile Bitcoin wallets
  • Hardware Bitcoin wallets
  • Web Bitcoin wallets
  • Paper Bitcoin wallets

In addition to the above classification of Bitcoin wallets, you will also find Bitcoin wallets that are classified based on the connectivity namely,

  • The online Bitcoin wallets and
  • The offline Bitcoin wallets.

Bitcoin wallets online

These Bitcoin wallets are often referred to as hot Bitcoin wallets and cold Bitcoin wallets. Let us look into detail about the offline Bitcoin wallets and online Bitcoin wallets.

Online Bitcoin Wallets (Hot Bitcoin Wallets)

Often referred to as the ‘Hot Bitcoin Wallets’, these Bitcoin wallets are often connected to the internet 24/7 and hence are called as online Bitcoin wallets. These online Bitcoin wallets are operational all the time round the clock and hence they are very much like the wallet the one carries in his or her pocket. Hence you are free to execute Bitcoin sending and receiving transactions from your online Bitcoin wallet anytime, anywhere.

In addition to the advantage of 24/7 transaction access to Bitcoins, there are security issues associated with the online Bitcoin wallet. Bitcoin transactions are often prone to security issues. As the online Bitcoin wallet is all the time connected to the internet, it is highly vulnerable to security issues and threats. Hence one has to adhere to caution while using online Bitcoin wallets.

Bitcoin Wallet Online

Offline Bitcoin wallets (Cold Bitcoin Wallets)

Online Bitcoin wallets are hot wallets and so on the other hand offline Bitcoin wallets are popularly known as cold Bitcoin wallets. Unlike hot / online Bitcoin wallets, the offline (cold wallets) Bitcoin wallets are those that are not connected to the internet and are offline. These cold Bitcoin wallets are stored in hard disks, pen drives, and any other form of USB storage or on paper. As the name suggests, offline Bitcoin wallets can be accessed even without internet connectivity. These cold Bitcoin wallets are not always connected to the internet and hence are less vulnerable to security issues. But these offline Bitcoin wallets are vulnerable to loss and theft. The public address and the private key once lost cannot be recovered.

Hence both the online Bitcoin wallets as well as offline Bitcoin wallets are prone to security issues, hence one should wisely choose the type of Bitcoin wallet that best suits his or her own needs and requirements.

May 11

Bitcoin Wallet And Its Kinds

By Admin | Bitcoin News , Bitcoin Wallet , Crypto Currency News , How to make money with bitcoin , The Crypto Wealth Formula

Bitcoin enables exchange of money in a different way than with usual banks. Bitcoins are basically new cryptocurrencies that are still actively developing day by day. Cryptocurrencies like Bitcoins are traded via the Bitcoin wallet that enables the receiving and sending of Bitcoins.

Bitcoin wallets come in different types. Each kind of Bitcoin wallet has different functionalities and characteristics. It is very important for one to choose the right Bitcoin wallet.

But firstly, let us get introduced to the different kinds of Bitcoin wallets.

What are the different types of Bitcoin wallets?

Different types of Bitcoin wallets

1. Desktop Bitcoin Wallets :

Desktop Bitcoin wallets are those that can be installed on a desktop computer. Desktop wallets provide complete access to the users, enabling them to create a public Bitcoin address and private key for sending and receiving Bitcoins. Some of the Desktop Bitcoin wallets include – Green address, BitGo, MultiBit, Bitcoin core, Bitcoin Knots etc.

2. Mobile Bitcoin Wallets :

Mobile Bitcoin wallets are applications that are installable on a mobile phone. Different Mobile Bitcoin wallets are available that are compatible with all types of mobiles like iOS, Android, Blackberry and Windows. Unlike desktop Bitcoin wallets that are fixed in one place, mobile Bitcoin wallets allow the user to trade directly from anywhere. Mobile Bitcoin wallets carry the same functionalities as that of the desktop Bitcoin wallets, but with an added advantage to allow the user to trade anytime and from anywhere. Some of the mobile Bitcoin wallets include, breadwallet, Simple Bitcoin, Coin.space, Bitcoin wallet, Hive Android, Mycelium Bitcoin and so on.

3. Hardware Bitcoin wallets :

Hardware Bitcoin wallets also known as cold storage, are reportedly the most secure and safest way to store Bitcoins. The number of hardware wallets is limited in number. Hardware Bitcoin wallets store Bitcoins in an offline environment, and can hold private keys electronically. Ledger Nano S and Trezor are the two popular hardware Bitcoin wallets.

4. Web Bitcoin Wallets :

Web Bitcoin wallets, also known as hosted wallets allow users to access the wallets from anywhere from a mobile or a desktop from a browser via a web source. These wallets are basically web services that are made accessible from any web or internet based browsers. Web Bitcoin wallets stores the user’s private keys online, and the Bitcoins are stored on the servers of the agency which the user has chosen as their online wallet. CoinBase, Blackchain, Xapo, Binanse are some of the web Bitcoin wallets.

5. Paper Bitcoin Wallets :

Paper Bitcoin wallets as the name suggests, are wallets with the Bitcoin public address and private keys printed on paper. The user can use the public address to send Bitcoins and the private key to transfer or spend the Bitcoins. Paper Bitcoin wallets are printed wallets on paper and the keys are available offline in the form of print. Users need to store the paper in order to avoid theft/ loss of the paper Bitcoin wallets.

May 10

How do Bitcoin Wallets work?

By Admin | Bitcoin News , Bitcoin Wallet , Crypto Currency News , The Crypto Wealth Formula

What is a Bitcoin?

Bitcoin is one of the most popular and widely known cryptocurrency. In simple terms, a Bitcoin is a digital equivalent of cash. Trading in Bitcoins requires a Bitcoin wallet that facilitates the sending and receiving of Bitcoins.

How do Bitcoin Wallets work

What is a Bitcoin Wallet?

A simple understanding of Bitcoin wallet – Bitcoin wallet is basically a software program that is used to store Bitcoins. Bitcoins are stored in the form of a private key, which is nothing but a secret number that addresses each Bitcoin that is saved in the Bitcoin wallet. Hence it is necessary for one to have a Bitcoin wallet in order to execute trade transactions in Bitcoins.

 Bitcoin Wallet

All you need to know about the Bitcoin Wallet!

Below are some key points that will help you know Bitcoin wallets better.

  • Setting up a Bitcoin wallet is the very first step when you are investing or trading in cryptocurrencies.
  • The Bitcoin wallet gives the ownership of the Bitcoin balance to the user (owner of the Bitcoin wallet)
  • Sending and receiving of Bitcoins is facilitated through the Bitcoin wallet
  • A Bitcoin wallet is sometimes referred to as a digital file that stores Bitcoins.

How do Bitcoin Wallets work

Understanding the Bitcoin Wallet – How do they work?

In the common world, the most handy and used means to carry cash is wallets. Both men and women carry wallets in different forms, shape, size and color based on their preference to carry cash. In the digital world too, there are e-wallets that hold the money associated with the user’s accounts. Basically in common language wallets are the most used and preferred choice to hold and carry cash and money in physical as well as digital form.  Similarly in the world of cryptocurrencies, we need wallets to hold the cryptocurrencies. Cryptocurrencies exist in various forms, among the many; Bitcoin is the most common and popularly recognized cryptocurrency. Hence a wallet for holding the cryptocurrency Bitcoin is known as a Bitcoin wallet.

To understand the concept and working of a Bitcoin wallet, let us take the basic example of an Email account. The working and concept of the Bitcoin wallet is very similar that of an email account.

How do Bitcoin Wallets work

Similar to the email address and password concept, Bitcoin wallets too receive Bitcoins and send or spend the Bitcoins. The Bitcoin trading transaction happens over the Bitcoin network. Similar to the concept of email address, the Bitcoin too has a public address that allows the user to receive Bitcoins via the public address, and similar to the password concept for logging into the email account, a private address (secret key) allows the user to send or spend the Bitcoins from the Bitcoin wallet.

Bitcoin Wallet = Bitcoin Address + Private Key

Bitcoin address – allows to receive Bitcoins in the Bitcoin wallet,

Private Key – Used to spend or send Bitcoins from the Bitcoin wallet.

Hence the Bitcoin wallet is a place where the user will have the Bitcoin address (public address) and the private key (secret key).

There are many different types of Bitcoin wallets available with different characteristics and functionalities, but the basic functionality remains to be the same across different types of Bitcoin wallets, which is to store the public and private keys.

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