A new stage in the evolution of money is related to the digital economy. One of the debating implementations is a cryptocurrency and its most common currency, bitcoin. This article will consider the best wallets for securely holding cryptocurrency, as well as effectively Bitcoin managing.
Bitcoins – the digital money of the future
The most famous and popular cryptocurrency is Bitcoin, but not the only one. The cryptocurrency market is becoming more saturated, other digital currencies are called – Altcoins, which means “Bitcoin Alternative”. Bitcoin can be interpreted as an innovative payment system and a new kind of money. Bitcoin is an open-source project; its architecture is public, everyone can become a member of the network. Cryptographic methods are used twice to prevent the possibility of losing other people’s money or using their own funds. In this network, information is transmitted from program to program, and the Internet plays the role of a transport system. Due to its properties, bitcoin provides new unique features that no traditional payment system has.
The Bitcoin exchange rate is extremely volatile and is determined solely by the balance of supply and demand. Currency circulation is not controlled by any bodies, departments, or organizations; it is carried out exclusively between the crypto-wallets of the participants of this network.
What is a bitcoin wallet?
Bitcoin turnover resembles an economic or mathematical game, where rules are invented, the number of resources, and the conditions for obtaining them. Using bitcoins is extremely easy, even if you do not know the technical details. All this is not more difficult than sending letters via e-mail.
Bitcoins are stored in “digital wallets”, which can be placed in a cloud service or on a home computer. The wallet is similar to a virtual bank account, which allows you to send or receive bitcoins, pay for goods or services. The wallet is free, you can download it from the official bitcoin website. After creating a bitcoin wallet, you can start generating addresses to get bitcoins for them. If someone wants to list them for you – just send a link with the generated address.
A virtual currency wallet is a tool for depositing, storing, and transferring bitcoins or other virtual currency. It contains the user’s private (private) keys, which allow him to spend the virtual currency assigned to the address of the virtual currency in the chain of blocks.
The wallet provider keeps a balance of the client’s virtual currency, as well as generally ensures the security of storage and operations with virtual currency. For example, in addition to providing a bitcoin address, wallet services may include encryption, signature protection using multiple keys, backup / “cold” storage, and “mixers”. All bitcoin wallets can be linked together. Wallets can be stored both online and offline.
The best alternatives of the wallet
Bitcoin wallets are divided into several types: online sites and exchanges, especially designed programs on computers or mobile phones, hardware devices or generate paper.
There is the following best crypto wallet Reddit options:
- GreenBits is a fast and reliable wallet for storing Bitcoin and managing cryptocurrency. The pros include instant payments and the highest level of security. The wallet has one disadvantage: a long time to install the software.
- Bitcoin Wallet provides one of the easiest ways to start using Bitcoin. The advantages of the wallet include a quick and easy setup of the program and an intuitive interface.
- MyCelium is able to provide the highest level of confidentiality. The advantages include the existing high rating from users and ensuring compatibility with hardware wallets.