You should get one thing clearly that the Bitcoin wallet is your private key; you can’t store Bitcoins there. People assume that Bitcoin wallet is the place where one can store Bitcoins. But, the fact is these cryptocurrencies can’t be stored anywhere. The Bitcoin balances are kept using as private, and public keys as these are long strings of letters and numbers which are created by using the complex mathematical algorithm. The public key acts like the address to the world and others can send Bitcoins to that address.
Bitcoin Wallet to Store Private Key
The private key is almost like the PIN number of your ATM Card. You have to hide it from the world’s eye and can only be used during authorized Bitcoins transmission. This key is kept in the Bitcoin wallet. How to safeguard your Bitcoin wallet? Here are certain effective processes-
- Encrypt the wallet with a strong password
- Choose a cold storage option that means you can store the key offline.
If you want to buy any commodity with your Bitcoin, you can use your private key. With this, you can send money to anyone or make payment for a service. While sending Bitcoins, you will need the address of the receiver. If you want to sell your Bitcoins on the exchange, you will get the selling amount in the local currency of the state that you can withdraw anytime.
An exciting feature of Bitcoin is that this is homogenous, that means the value is same everywhere in this world. Still, the price varies in different countries, and when exchanged within the country, it can give rise to the arbitrage opportunities.
Presently, the number of places where the exchange of Bitcoins has become vivid is increasing. This has included lots of big businesspersons and retailers and merchants. As the popularity is increasing day by day, the Bitcoin is setting its feet across the globe and getting secured as one of the crucial modes of payment. Recently, Japan has accepted Bitcoin exchange as a vital payment option of the country.
Use Real Money to Buy Bitcoin
Do you have a Bitcoin wallet? Then, it is time to pay by your credit card or debit card or bank transfer to buy Bitcoin. After buying, Bitcoins are transferred to your wallet. The type of payment method is operated by the jurisdiction of the area and also the method of exchange. You should be careful that Bitcoin exchange is different than Bitcoin wallet. Bitcoin exchange is similar to forex exchange where you trade for the cryptocurrency for a fiat currency.
While exchange options provide the capability of the wallet of the users, this is not their primary business. As wallets must be kept safe and secured, exchanges never encourage storing a large number of Bitcoins for a longer period in your wallet. So, transferring the Bitcoins is the safest option to keep your wallet safe. If your Bitcoin account is hacked once, you will lose it all. This makes securing the safety of your Bitcoin wallet must be your utmost priority.
You will find numerous exchanges which work as a one-stop solution by providing high-end security and reporting. You should always check the due diligence while choosing Bitcoin wallet or exchange.