How does Bitcoin work

Bitcoin wallet is software that holds your bitcoins and when you need to access your cryptocurrencies, you must hold a digital wallet in your device. With an internet connection, you will be able to send and receive bitcoins to and from the wallets with other users.

When you hold a bitcoin wallet, you will have two keys, namely, public and private key. The public key is your bitcoin address and you need to share this address to the other person with whom you are transacting bitcoins. Whereas, private key is just like the password for your wallet and you should not share this to anyone.

This way, you could prevent your digital wallet from being hacked by hackers. Also, it is recommended for you to change your public key more often. When you do not have bitcoins, but you are thinking to get them, you can make use of bitcoin bonus and so you can get some of them to use. Now, you are going to see about the types of bitcoin wallets.

  • Paper wallet – These wallets are printed in the form of QR-codes and so you can scan this code whenever you need to transact bitcoins.
  • Mobile wallet – This wallet is software that can be installed in your mobile phone. When you are using bitcoins more often, then it is the best wallet to use.
  • Web wallet – Your private keys are stored on a server and are online and is controlled by third party services.
  • Desktop wallet – This wallet is downloaded and installed in your computer and you have to store private key in your hard drive. Since there is no involvement of third party, bitcoins will be stored safely.
  • Hardware wallet – In this type of wallet, your private key is stored in a hardware device and is the most secured way of storing your digital money.