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What is Bitcoin Wallet? How does a Bitcoin Wallet work?


by The Blockchain Diary on 2019-02-13


What is Bitcoin Wallet? How does a Bitcoin Wallet work?

When trading Bitcoin is always the talk of a so-called wallet. What this is exactly and what you need it for, we explain to you in this practical tip.


Bitcoin Wallet

The Wallet is an important tool in dealing with Bitcoin. Once you have purchased bitcoins, it is possible to keep them in a wallet, a physical or digital electronic wallet. It makes it possible to avoid the risks of piracy which cryptocurrency platforms may suffer. It comprises two elements: a public key, known to all, which corresponds to a bitcoin address, and a private key, known only to the holder of the wallet. Physical wallets look like USB keys. Two big players compete for the market, the French Ledger and the Czech Trezor. Digital wallets, software portfolios, can be accessed on computer, mobile and desktop. Some examples of software wallets: ArcBit, BitGo, Electrum, Mycelium.



How does a Bitcoin Wallet work?

Every wallet is a kind of long string. These are only available once and describe your wallet and no other. Your wallet will be stored in this wallet.

If someone knows your wallet, they can also see how much credit they have on this wallet. So that only you have access to your wallet, it is protected with a password.

Every wallet is anonymous. No personal data is stored. In addition, you can also buy more wallets.

It is advisable not to store your entire fortune in a wallet. Create additional wallets with little credit, for example, for mobile use on the smartphone.

You can also copy and save a wallet like a file. Wallets with lots of credits can therefore be saved offline and backed up in different locations.


How do I use a Bitcoin Wallet?

Creating and using a Bitcoin Wallet is relatively simple.

First, you have to decide if you want to use Wallet on your smartphone, tablet or desktop. There are also pure online wallets or so-called hardware wallets. These are a kind of USB stick on which the wallet is stored.

On the Bitcoin page there is a large selection of different wallets for the respective systems. Find and install one of these wallets. After installation, you can add bitcoins to your wallet.


The bitcoin cash

Bitcoin Cash (whose acronym is BCH) is a cryptocurrency developed on 1st August 2017, following a fork of bitcoin. A fork is a new branch created from the source code existing software. In recent years, the Bitcoin community has been debating the evolution of bitcoin, which has several weaknesses including the capacity of transactions per second. The size limit of a bitcoin block is equivalent to one megabyte, allowing approximately 250,000 transactions per day. Bitcoin cash has a limit of 8 MB, which allows processing about two million transactions per day. Increasing the size of a block allows for faster payments and lower transaction costs. The only downside, the cash bitcoin mobilizes much more computing power than its cousin to validate transactions.

Cash bitcoin is the fourth most valuable cryptocurrency, behind bitcoin, ether and ripple. At the beginning of June 2018, its capitalization reached $14 billion, the equivalent of that credit. His course was around 850 dollars at the same time. It can be purchased on major trading platforms such as Coinbase or Binance.


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Tags: CRYPTOCURRENCY | BITCOIN | BITCOIN-CASH

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The Blockchain Diary
The Blockchain Diary
Dive into a treasure house of technology informations about Blockchain, Bitcoin, Altcoins, Cryptocurrency and lot's more.