On April 14th, 2021, Bitcoin reached an all-time high of $64,000 per coin. If you had bought a few thousand dollars a mere few years earlier, you would be very wealthy.
Whether you are a beginner trader or a pro, you need some way of storing your access to Bitcoin. The best way to do this is by using a Bitcoin wallet. There are a few different forms of Bitcoin wallet.
If you are wondering how to get a Bitcoin wallet or the best Bitcoin wallet for you, check out this informative guide. The following are five essential things you should know about Bitcoin wallets.
1. A Bitcoin Wallet Doesn’t Store Bitcoin
No matter what form of Bitcoin wallet you select, keep in mind that the wallets themselves don’t store Bitcoin. Instead, they hold the passwords and PINs needed to access your Bitcoin.
Without your passwords, you don’t have any proof of ownership for Bitcoin, which is stored on the live blockchain. With them, you can redeem the value of your cryptocurrency and convert it to other forms of currency.
2. There Are Cloud-Based Bitcoin Wallets
You can store your passwords in an online cloud-based wallet. These are hosted on a server of a Bitcoin exchange. You can buy and sell Bitcoin on the exchange and store access to your passwords there as well.
3. There Are Analog Wallets
An analog Bitcoin wallet is more of an absence of a wallet. If you take your passcodes, write them down on a piece of paper, and put them in a shoebox under your bed, this is your analog wallet.
The disadvantage to these wallets is that you are out of luck if you lose the passcodes and can’t retrieve your Bitcoin.
It is also more challenging to redeem Bitcoin this way as it is a digital currency, and you must input your passwords digitally.
4. You Can Use a Bitcoin Wallet App
You can download a Bitcoin wallet app straight to your smartphone or another device. This allows you to store your passwords on the device and also conduct electronic transactions with your device.
Any form of electronic wallet will have a corresponding Bitcoin wallet address that is its unique electronic identifier. This is what separates your wallet from others.
5. There Are Bitcoin Hardware Wallets
If you download your passwords to a hard drive, thumb drive, or another form of electronic hardware, this is known as a hardware wallet.
You can keep these wallets offline for extra security or connect them to the internet to redeem your crypto.
If you want to upload more Bitcoin to a hardware wallet, you can use a Bitcoin ATM or other means. You can learn more about this by checking out Byte Federal. They are one of the best ways to purchase Bitcoin.
Choose Your Favorite Type of Wallet
If you are thinking of dabbling in Bitcoin, one of the first decisions you need to make is about your Bitcoin wallet. There are many different kinds, and you can utilize one or all of them.
Use the five tips in this guide when deciding what kind of wallet is best for your purposes. That way, you can make the best decision about how to access your crypto. For other great information, make sure to read more stuff on our blog.
