BITCOIN- A NEW VIRTUAL GOLD

 A bitcoin can be understood in simple terms by stating it as a digital currency since these bitcoins aren’t available in any sort of physical shape or form which makes it technically impossible to keep them with yourself. Instead, it is sorted into more private keys through which it gets possible to access your bitcoin address and all the previous transactions or authentic signatures which will be required to be kept very securely. To complete a transaction between the recipients and it is required to have both the public and private keys together. 


To make the whole process a lot more convenient there are various crypto wallet apps are available in different forms which serve as per the requirement of an individual and all of them have slight variations with their security levels, convenience, and accessibility along with various other features. Let’s look into the type of wallets which are found in general:

  1. PAPER FORM


A wallet based on paper is simply an important piece of document which consists of the public address of bitcoin receiving along with the private key which gives you the liberty with all the spending or transfers you want to with the bitcoin stored in that address.

 

  1. PHYSICAL FORM OF BITCOIN

These are in the form of preloaded or prepaid bitcoin which has a fixed amount inserted with it which serves the keeping it intact and can only be used for the type of spending when there is the right key available for it. They generally come with a tamper-evident seal. The first one ever made was in the form of a credit card which was followed up round metal shaped in the following models.

 

  1. IN YOUR MOBILE

This is very convenient for people who are regular users of the bitcoin with their payment of goods in different shops or using for personal trading, having such a bitcoin wallet app comes as a handy tool for them. This is just like any other app running on your smartphone which stores all your private keys and gives you access every time you need to do certain payments instantly using your phone.

 

  1. WEB WALLETS

The wallets based on the web helps in storing all the private keys on a server which remains online all the time and is usually managed with the help of a third-party. You can experience a change in the services and features based on the servers you are on where some may allow you to link the same with your mobile or desktop wallets by replicating the address on all the devices which you want.

 

  1. DESKTOP WALLETS


These wallets can be easily downloaded and installed on your desktop where your private keys will be securely stored in your hard drive only. When we compare it to the web wallets, they seem to be more secured and up to some extent have a fair advantage over the mobile wallet as well there is no involvement of any third party which makes it pretty secured from any kind oh hackers. However, the threat is still there as your desktop will be remaining online as well. These wallets serve as a better option for people looking to trade small amounts of bitcoin with their desktop.

 

  1. HARDWARE WALLETS


This is somewhat new and a unique approach with the bitcoin wallet where the private keys of the user’s bitcoins are stored securely within a hardware device. It is by far counted in as the best wallet in terms of security of the bitcoin since there has been no such incident recorded where even the smallest amount got stolen from any sort of hardware wallet. They are also totally safe and away from the various viruses which can be found in your laptop and the stored funds are impossible to be transferred out of the device in plain text form and have been counted in as an open-source software mostly.

 

  1. BANK


The executive director at Taurus Wealth Advisors, Rainer Michael Preiss has made a statement in public regarding the large US banks which have the fear of potential blockchain, bitcoin, and other cryptocurrencies. One more thing which came out was that with the presence of so much uncertainty in the transparency provided by the banks, cryptocurrencies are coming out to be a very good option for all the investors. This could be the reason we have seen that most of the banks declining the usage of bitcoin within them as any sort of currency and few of them found to refusing the funds which were obtained with the operations included in managing the cryptocurrencies.

 

  • POTENTIAL ISSUES WITH THESE WALLETS AND SECURITY


Any sort of trojan will be able to encrypt the hard drive files you have which can be further lead to the links associated with your wallets. This is a potential security threat that you need to take care of by considering all the vital safety options.
Location: United States

Comments

Post a Comment

Popular posts from this blog

Best Investment Ideas 2020

  All investors should keep in mind there is no such kind of investment in which the high return is available without any risk. Nowadays, more and more people are looking for different investment ideas. If you are one of those who are looking for different ideas for investment, you are landed at the right place. Here, in this article, we are going to discuss various investment ideas for 2020: 1. Direct Equity Investing in stocks is not an easy task because it is associated with loss. When you invest in stocks, there is no guarantee that you will get a good return on the investment. When you invest in equity, the only beneficial thing is inflation-adjusted return as compared to various other investments. If you invest in the share, the risk of losing is associated with it. Well, you also have an option for choosing the stop-loss method to cut down the losses. If you want to prevent yourself from losing, you can sell your stock at a specific price. If you want to reduce risk to a certain
Read more

HOW DO YOU STORE YOUR BITCOINS

Image
  Before you own bitcoin, you need to have a place to store it. This place is called a "wallet."  Instead of holding your bitcoin, it holds the private key that allows you to access your bitcoin  address (which is also your public key). If the portfolio software is well designed, it will give the  impression that your bitcoins are actually there, making using bitcoins more convenient and intuitive. In fact, a portfolio usually contains several private keys, and many bitcoin investors have multiple  portfolios. Wallets can live either on your computer and/or mobile device, or on a physical storage gadget,  or even on paper. Here we will briefly look at the different types of portfolios.   Electro-wallet Electronic wallets can be downloaded as software or hosted in the cloud. The first is simply a  formatted file that lives on your computer or device, and that facilitates transactions. Hosted  wallets (in the cloud) usually have a more user-friendly interface, but you'll e
Read more

Tips To Properly Protect And Secure Your Bitcoin Wallet

  Bitcoin is one of the oldest and most widespread peer-to-peer payment systems; the amount of its market capitalization now exceeds that of other cryptocurrencies. Due to its immense popularity, many companies and a few individuals have already begun to integrate it as a payment system. But there is still a threat to the security of digital wallets. Last year, ransomware like WannaCry attacked several computer systems around the world through Microsoft Windows and demanded payment of ransoms in Bitcoins. Even if Bitcoin transactions rely on the blockchain, this block-based technology that complicates the hacking of cryptocurrency information, the security of your Bitcoin wallet should not be taken lightly. But first, let's clarify what we mean by the "Bitcoin portfolio." A Bitcoin wallet is a digital wallet where Bitcoins are stored. Obviously, there is no question of storing your Bitcoins anywhere since they contain a private key or a secret number for every Bitcoin ad
Read more