Despite much speculation in the market, the Bitcoin revolution is here to stay, and an increasing amount of people is echoing on this phenomenon. To securely make transactions with other people using Bitcoin, you need to take some security measures and make sure you store your Bitcoins far from the reach of hackers and burglars. Read on and find out how do Bitcoin wallets work and which the best Bitcoin wallet is.
Table of Contents
The Bitcoin Wallet
The Bitcoin Wallet is, as its name implies, the place where you store all the Bitcoins you´ve gained. It is a piece of software you log in to that was created specifically for this reason, and it works close to what an email address does. It could be divided into three major aspects:
Public Bitcoin Address
Much like in an email address, this is your Bitcoin address. If someone wants to send you an email, they have to know your email address to send it there. Your public Bitcoin address is exactly that: the address where all the payments have to be sent for you to receive them. This public Bitcoin address has to be known by a wide amount of people; many people even post this on their public profiles as part of their personal information to tell every potential client they can receive Bitcoin payment for the services given.
This is the second important aspect of the Bitcoin and is very much like the Password of your email address: you need to keep it hidden because it is the key that opens the door to making transactions from your BTC wallet. Much like every other transaction in the world, Bitcoin is a one-way transaction in the sense that once the Bitcoin left your wallet, it can´t be unmade; the receiver has to give it back (making a new transaction) in goodwill. If someone finds out your Private Key, they can steal all your money by sending it to themselves from your wallet. The private key is not displayed anywhere much like you wouldn´t display your email password.
This is the third and final aspect to understand about Bitcoin wallets: the service provider. Just like we trust our information on huge brands like Gmail, Hotmail, and so on; there are Bitcoin clients that host our accounts (wallets) and from where we send and receive the payments. This is entirely your choice, and it doesn´t matter in the moment of the transaction where it came from and where it is going, you can just send and receive from one client to another without problems. It should be trustable and dependable because you will be storing there your money.
The Best Bitcoin Wallets
There are many different Bitcoin clients where you can host your wallet. Not all the Bitcoin clients in the market have the same level of dependability. This is a crucial aspect because of theft and other types of online threats. These, in our opinion, are the best ones:
Regarded as many as the best bitcoin wallet in the market, Coinbase has gained a big following in the past years. It is very easy to make transactions and to link it to a US Bank Account.
This is the safest place for your Bitcoins. It is not a buying and selling platform like Coinbase, but a storage place (the safest one).
This is the Bitcoin wallet that works the best with desktop computers.
Just like Electrum works great with desktops, Mycelium is the best for mobile phones.
It might sound like much info all of a sudden, but it is not hard to operate safely in a Bitcoin-based universe.