When you wish to own bitcoins, then the first thing that you have o do is install a digital wallet on your device. This bitcoin wallet is nothing but a software application, similar to normal wallets which store your money, this digital version stores your cryptocurrency. Only when you own a wallet, you can send and receive bitcoins to and from other bitcoin users.
Once you know what is bitcoin, the next thing that you have to know about transacting cryptocurrencies is how do they work. As said earlier, these wallets will not exactly store your bitcoins but your public as well as private keys and also it is linked with the blockchain which a public ledger that used to track all the transactions made with transactions.
There are a few types of wallets which you can make use of and there are listed down:
- Desktop – You have to install or download this wallet in your device.
- Online – This type of wallet can be accessed from any type of device from anywhere as it runs on cloud.
- Hardware – In this wallet type, your private key is stored on any hardware device.
- Paper – This is physical copy of your private and public keys and it is more secure form of wallets.
- Mobile – Same as desktop wallets but they run on your mobile phones.
The level of security of your wallets is relied on the type of wallet you are using and you have to more precautious and careful while using these wallets.