Currency has been used over the ages in many kinds of transactions. It comes in various forms and one of them is in digital in form of Bitcoin wallet. People have sent and received money to each other physically and now the transactions have gone digital. There are the normal modes that people are used to and do it every day as they are simple with no known jargons and processes but in comes the Bitcoin Wallet which is quite diverse but a little cumbersome.
There are many ways to send and receive money across the board and this can be local or even internally. This can be done with people that know each other or even with people that you do not know or even trust and this is by using bitcoins which is a system used globally for money transactions and it is also digital. With the lack of tangibility, the bitcoins need a way to be kept and used safely without the risk of being conned.
The wallet is found through Apps that can be downloaded in app stores on the phone or device that is being used. The program is in form of software used in trading and also the holding the bitcoins. Once downloaded one is able to access the Bitcoins and use then in various online transactions.
How it works
As most online information, this one is presented in secret codes in form of data that are only available to the person using it and also combined with the other person’s code. The codes act as signatures for the transaction and also protects the information and the people transacting from change and alteration.
Investments done like in the bank wallet and deposits received by the user assist in the transactions and making of more money
As you cannot get the money directly from the wallet. There is a process in which the user can sell them without announcing it to some agencies that do it and in turn get a particular amount of money which is equivalent to the number of bitcoins exchanged with.
Different Types of Wallets
As the name suggests, the wallet contains a public address in a document where there is the receiving Bitcoin and the private key. Of all the wallets available this one is the most risk free from hackers as the information is mostly stored offline. The code is set up and let to run offline. With this there is no risk of also viruses that come with the other modes of transaction as the link has been come from all online activities
The mobile has become a must have for many individuals as the there are many things that can be done through it. This means making the transactions is as easy as the push of a button. The software must have a lot of information but the app used in the mobile has been set to correlate with the mobile use. There is a down side on the mobile use as the security of the wallet is compromised when someone else gets the phone and it is also prone to hacking.
The wallet is placed on your computer as it is downloaded on the hard drive being safe from third party’s alteration and stealing but still prone to hacking and less security as it is connected to the internet. This is found to be a good option for those that want to do small transactions.
There is a scarcity of banks making this kind of transactions and these has led to a bitcoin bank to be developed do the transactions. The bank operates like any other bank depositing and also making of investments that in turn are required to get profits.
With this, there are a number of bitcoins that can be used and it is usually a fixed amount. The wallet has a private key that is used and hidden. The wallet is used in trading that is done offline and this really assists apart from the fact that the wallet can be used by individuals that want to do illegal activities like the use of counterfeit money.
With this wallet the information is stored separately. The use of a server is to keep the private key and it has a third party doing all the activities required for the different transactions. The wallet is used on an online level. The web wallet is similar to that of the mobile wallet as it is a program that can be accessed by the user by a touch of the button. The downside of the web is that the use of a third party means the private key if not secure might be accessed and the funds might be altered with or the they might close and leave with everything.
Of all the wallets, this has been found to be the most secure. A hardware device that is secure is used to store the key. The hardware is quite interactively and some come with a extra security more than the rest. The hardware device can be carried around by the user although the risk of it being physically stolen or lost is high it is generally safer than the other modes of transactions.
The Bitcoin wallet has come with a lot of advantages and disadvantages like malware, theft and the misuse of encryption. As the use of online sources is in play, there is also a chance of wrong transactions and other mistakes that can be made hence running the risk of losing finances. This said the process is relevant new and not many people have embraced it but just like other ways of transactions people are slowly catching up with the occurrences and changes. The Bitcoin chase might be a slow process but as time goes by there is a chance of the financial technology getting a bigger chance of recognition.