WHAT IS A BITCOIN WALLET ?

Fredrik Grothe-Eberhardt

CEO of WeMoveCoins.

What is a Bitcoin

A bitcoin is a cryptocurrency, which is purely a digital form of money that can be used for spending and investments. In recent years bitcoins and other cryptocurrencies have become more and more popular due to their large investment returns that they can provide. Many countries have advisors who can help people with investments such as Finland where they would call this “kryptovaluutta sijoittaminen” which simply means cryptocurrency investing. This shows how it is becoming a huge market for business and personal finance investors.

Like Copy and Paste

As long as there has been money around, there have also been wallets. They’re inseparable companions like pen and paper, bread and butter, or Copy and Paste. And well into the digital era of financing, money still needs a place to rest when they’re not circulating. In turn, the arrival of Bitcoin inevitably brought about the Bitcoin wallet. But what is a Bitcoin wallet, which one should you choose, and how do you use it? You may even be thinking “what is Bitcoin?” if you’ve never heard of it before. Luckily, there’s plenty of online resources like aboutbitcoin.io that are dedicated to getting people up to speed with information on the cryptocurrency.

Your Bitcoin wallet is a software program

A Bitcoin wallet is a piece of software that enables the user to send, receive and store bitcoins. It’s sort of the digital version of the familiar leather wallet you probably keep in your back pocket. Of course, there are some key differences to consider. Instead of storing your bitcoins in your Bitcoin wallet, the wallet merely holds any relevant information – like your private keys – that makes it possible for you to access your public Bitcoin addresses and make transactions. Making the most of the storage for your cryptocurrencies depends on security and safety above anything else. As it’s not a physical product you can hold and see, it’s much easier to gain access to through software. Trezor (as you’ll see here – https://www.cryptocurrencyposters.com/how-to-use-trezor/) is a prime example of something called Cold Storage that you could implement if you need it.

Now, what wallet should you choose?

Well, a bitcoin wallet comes in many forms. They can be divided into four categories: Desktop, mobile, web and hardware.

Desktop wallet: is a wallet you install on your computer. It enables you to generate a Bitcoin address to send and receive bitcoins. It also allows you to store a private key.

Mobile wallet: is a wallet (application) you can download to your mobile device to bring along with you when you’re leaving your computer. This way, you can pay with bitcoins in physical stores through NFC or a QR code.

Web wallet: is a wallet that enables you to use bitcoins everywhere, regardless of browser or device. But you should always choose your web wallet carefully, seeing that it stores your private keys online. If a web wallet is not implemented correctly, the organization behind the software might get a hold of your private keys.

Hardware wallet: is a physical unit that stores your private keys and enables you to use your bitcoins. Right now, there aren’t many hardware wallets on the market to choose from.

We recommend

For mobile devices we recommend the following wallets:

For iPhone: Breadwallet. Click here to download.

For Android: Bluewallet. Click here to download.

For desktop and laptop computers we recommend the following wallets:

Thin Node: Electrum. Click here to download.

Full Node: Bitcoin Core. Click here to download.