It is true that bitcoinrush and other crypto currencies are available digitally and there is no physical form available. But you can buy goods and services with bitcoin and you need to use a wallet to transfer your coins to another account. There you can find some differences between normal wallet and crypto wallets. You can store your private and personal keys in your bitcoin wallet, and you can use such keys to transfer your coins. For example, you can share your public key with another user to get some coins transferred to your account and you can use your private keys to send your coins to another wallet. Never dare to share your private keys with a single soul because people having your private keys can steal your coins from your account. Apart from that, such keys are keeps changing and your private and personal keys will be charged automatically after each transaction.
Apart from bitcoin, you can also use your crypto wallet to store your other digital assets or currencies such as Ethereum or XRP. Bitcoin wallets are not only store your coins, but your wallets can keep your coins secured and safe with private keys. It is like a password that you are using in your net-banking. You need to use your user ID and password to access your bank account and you can use such credentials to transfer your funds from your account to another bank account. Similarly, for the wallet-to-wallet bitcoin transferring, you can use your private keys as well.
Things to know about such crypto wallets:
According to Sarah Shtylman, Fintech and blockchain counsel with Perkins Coie, bitcoin wallet is similar to your email account. If you want to send an email then you need to log-in to your email account by entering your ID and password, and you can press the send button to send a mail to a receiver. Similarly, you can access your wallet by entering your keys and you can send bitcoin to another user’s account by entering your private keys. Like email, here you need to add the receiver’s crypto account or wallet number, which is known as public keys.
There are different types of wallets available for crypto currencies, such as mobile, web, desktop, and hardware and paper wallets. You need to know their features before you choose a wallet.
- Web based wallets are using third party services to store your coins and you can access your wallet from your devices. You need to connect your device with internet to access your wallet. People consider such web wallets secured because hackers cannot access your computer or laptop and you can keep your coins safe. But, if you do not have a strong malware protection and antivirus software installed in your devices then cybercriminals can easily hack your device.
- Mobile – if you are a daily trader and want to trade bitcoin on a regular basis then you can use a mobile wallet. You can download such wallets in your mobile at free of cost and these wallets are available at android and iOS store. But, these wallets are not safe because if you lost your mobile then people can easily hack your account and cybercriminals can also access your crypto wallet through other apps that you have in your mobile.
- Desktop – You can download a wallet in your desktop and store your coins in your drive. It is a secured option than other wallets because you do not need to avail any third party services to access your bitcoin wallet.
- Hardware – if you want to hold your coins for a longer period of time then you can use a hardware-based wallet. It is like a USB device which you can connect on your computer. You can store your coins in this device and you can add two-authentication layers to keep your wallet safe.
Apart from that, you can use paper wallet where you can write your private and public keys on a paper and keep it in a safe place. To avoid such hassles and risks associated with bitcoin wallets, you can try Bitcoin era. Many investors have labelled it as a secure platform.