Friday, 12 December 2014

Different Ways To Store Your Bitcoins

Posted By: Allan - 10:32

Bitcoins are stored in the wallets which acts a digital storage. It stores the private key which would be required to access a bitcoin address and to initiate payment transactions. Wallets usually come in various forms and each one is designed for specific types of devices. You could even use the paper in traditional way for storing the private key and avoid the use of computer at all. It is extremely important to secure and back your bitcoin wallet from time to time.
Bitcoins had emerged as a modern alternative for the cash; it is also regarded as a digital currency. Now many merchants and companies had started accepting payment in bitcoins. Bitcoins as they digital in nature they are stored in the digital wallets.

Types of Bitcoins Wallets
Bitcoin wallets mainly are of four types:
a.       Desktop Wallets
b.      Mobile Wallets
c.       Web Or Online Wallets
d.      Hardware Wallets



Desktop Wallets Features
The bitcoin client popularly known as Bitcoin Qt is a desktop based wallet. This allows in relaying the transaction on the Bitcoin network and this software also enables the user to create bitcoin address for sending and receiving the digital currency. Your private key is securely stored on this wallet as well.

The desktop wallet comes in different varieties which work fluidly on specific operating systems. Mutlibit bitcoin client runs on Windows and Mac OSX and Linux. Hive is another desktop wallet which an OSX based wallet and posses some unique feature which allows the users to connect to an app store that directly connects to the bitcoin services.

Mobile Wallets Features
Mobile wallets assist you making the transaction while you are away from home. Mobile wallets are as simple as running an app on the smartphone, this wallet stores the private keys for your bitcoin address and allows you pay directly from your phone.
Mobile wallets for the Android based OS are Myceliu, Xapo, Bitcoin Wallet and Blockchain. Blockchain has a special feature which keeps the bitcpoins encrypted on your phone and backed it upon a web-server.

Online Wallets Features
Web based wallets simply store your private keys online. They also have a special feature which allows them to link it to your mobile and desktop wallets by replicating your addresses between the different owned by you. Web wallets give you the advantage of accessing them from anywhere in the world as well as regardless of the device you is using. Coinbase and Circle are the example of some widely used web wallets for storing bitcoins.

Hardware Wallets Features
Currently hardware wallets are extremely limited in numbers. Hardware wallets are dedicated devices which can hold your private keys electronically and allows the payments. Trezor and Mycelium both are having the wallets in development but they had been introduced in the market yet.

Bitcoin Wallets Safety Depends Upon You
Bitcoins wallets safety essentially depends upon the users management skills. If you use it to buy bitcoins but you lose your wallet due to hard disk crash, cyber theft or misplacing your private keys, then you would simply lose all your bitcoins. Bitcoins are safe as long as your wallet is not accessed by someone else or you lose it.

About Allan

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