Bitcoin has emerged as the world’s single largest cryptocurrency. An increasing number of people worldwide now engaged in various bitcoin-related activities. The very first step every bitcoin expert needs to do is to create a bitcoin wallet account to store this cryptocurrency. Learn how to create more than one Bitcoin Wallet.
It is very important to choose an appropriate bitcoin wallet, best suited to your needs. Deciding how and where to store your precious bitcoin can often be difficult. One needs to prevent it from malware and hackers.
Before commencing mining and trading, you will require a bitcoin account. A bitcoin account is the bitcoin wallet. You can open your bitcoin account with any trustworthy bitcoin exchange and download the wallet they offer online such as coinbaazar.com. All bitcoin exchanges offer their version of wallet or account. It is important to verify the source of bitcoin wallet/account since the industry is under siege of various hackers.
Each bitcoin wallet is combination of two keys:-
- A private key is a secret number that allows spending bitcoins. Every Bitcoin wallet contains one or more private keys, which is saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet.
- A bitcoin wallet address is a hashed version of your public key. If you want to receive Bitcoin, you have to tell someone bitcoin address. It’s like a bank account. Just Bitcoin address is public and you are able to track all transactions from or to this address.
TYPES OF BITCOIN WALLETS/ACCOUNTS :
Bitcoin is a cryptocurrency, it does not exist in the form of banknotes and coins. You cannot carry bitcoin in a purse or wallet like cash. Bitcoin owes its existence to the internet, hence you can store and trade online only. There are three types of bitcoins wallets:-
- WEB Based: A web-based account is held on a host server of an exchange or a service provider. You can access it online only. Bitcoin is protected by a complex user name and highly encrypted passwords to offer maximum security. A web wallet is connected 24/7 to the blockchain. It uses the entire blockchain which makes the transactions faster.
- SOFTWARE Wallet: a software wallet or account for bitcoin is the most popular. It involves downloading the wallet on your PC, laptop or mobile. A software-based bitcoin wallet is similar to the m-wallets and e-wallets used for online transactions. A software wallet also protected by complex passwords. Some software wallets download the entire blockchain ensuring maximum security. For flexibility of use, software wallets can be download on multiple devices.
- HARDWARE Wallet: The most secure way to store bitcoins, the hardware wallet is a physical device that can connect to the blockchain whenever required. It is hardware specifically designed to hold your bitcoins. A hardware wallet can be hot or cold. A hot hardware wallet is constantly connected to the internet. A cold hardware wallet can connect to the blockchain when required. You are in complete control of your bitcoins since passwords protect the device.
HOW DO I CREATE A BITCOIN WALLET?
Which wallet suits you best depends on several factors, such as what your buying needs are, and what you would like to use the bitcoins for. When you’ve just started buying bitcoin, an online wallet is an easiest and most user-friendly way to manage them. In this, we will use the blockchain wallet due to its ease of use, simplicity, and popularity.
- Go to blockchain.info and press ‘create wallet’.
- You will need an email address that will be necessary to verify your identity each time you try to open your wallet and a password.
- When finished, you will be asked to write and store a phrase that will be used to get access to your wallet if you forget your password.
- This is important because there is no way to recover it if you lose your password.
- Once created and verified through the confirmation email, It gets open and starts operating with bitcoins.
ARE BITCOIN WALLET SECURE?
Wallets are stable to varying levels. A web host is a riskier environment to maintain your money in comparison to offline. On the other hand, Offline wallets, you cannot hack offline wallets because they don’t connect to the internet network and does not rely upon a third party for safety.
Online wallets have demonstrated the most exposed and vulnerable to hacking attacks, meticulous security measures you have to follow and implement when utilizing any wallet. Bear in mind that regardless of which wallet you utilize, losing your private keys can direct one to lose your cash.
- Backup Your Wallet: Store only small amounts of currency for everyday use online, on your computer or mobile, keeping the vast majority of your funds in a high-security environment. Cold or offline storage options for backup like paper or USB will protect you against computer failures and allow you to recover your wallet should it be lost or stolen. It will not, however, protect you against eager hackers. The reality is, if you choose to use an online wallet there are inherent risks that can’t always be protected against.
- Update Software: Keep your software up to date so that you have the latest security enhancements available. You should regularly update not only your wallet software but also the software on your computer or mobile.
- Add extra Security Layers: The more layers of security, the better. Setting long and complex passwords and ensuring any withdrawal of funds requires a password is a start. Use wallets that have a good reputation and provide extra security layers like two-factor authentication and additional pin code requirements every time opens wallet application.