Overview Of Bitcoin Wallet
Cryptocurrency or Bitcoin wallet, both stores two kind of keys called ‘public and private key’. That key can be used to receive or send the cryptocurrency. One Cryptocurrency wallet can contain many public and private key pair. Similarly, each public key will have a separate private key to spend the cryptocurrency and as per the recent data analysis currently there are over 1,638 cryptocurrencies are alive.
The first and best known example is Bitcoin. Usually, the cryptocurrency will not be in the wallet because the cryptocurrency is decentrally stored and maintained in a publicly available ledger. Also, every piece of cryptocurrency will have a unique private key so using that private key we can able to transfer the amount of cryptocurrency as we want.
For better understanding you can see the sample keys of paper printable bitcoin wallet in the below picture,
Bitcoins Wallet Applications (Both iOS and Android)
Bitcoin’s evaluation is getting very fast. As per the expert’s predictions, cryptocurrency will be the most valuable cyber asset in future. Bitcoins are stored in wallets, However, you need to be very careful while using Bitcoin or Cryptocurrency wallets because some wallets will not be that secured so there might be the possibility for getting hacked.
Some of the well known cryptocurrency wallets apps:
Advantages Of Using Bitcoin Payment:
ImageSource: Techworm
User Anonymity:
Purchasing Bitcoin is discrete in nature. Until the user voluntarily comes to publish their Bitcoin transactions, his personal identity will not get associated with the other purchaser. Bitcoin transactions cannot be tracked back because every time a new address will be generated for each transaction.
No Third-party Interruptions:
Major advantage of bitcoin transaction is that there is no interruption by the third-party such as governments, banks and other financial intermediaries. Also, they do not have access to freeze the bitcoin accounts. This system purely based on peer-to-peer transaction which provides at most freedom to the users than the national currencies.
Purchases Are Tax Free
The third-party has no authority to identify, track or intercept transactions that are denominated in Bitcoins. The major advantage of bitcoins is that it comes with tax free.
Related: How To Own A Bitcoin/Cryptocurrency Exchange Trading platform
Very Low Transaction Fees
In wired transfers and foreign purchases, the fees and exchange cost is much higher than bitcoin transactions. On the standard wire transfer and foreign purchases we can’t do it without the involvement of the third party whereas the bitcoin transaction will not have any third party intermediaries and that’s why the cost of transaction is very low in bitcoin. In addition to that, transactions of bitcoins happens very quickly as it eliminates the inconvenience of typical authorization requirements and waiting periods.
Control Over Money
Bitcoin provides greater flexibility and provides more control over users money. Because securing your “wallet” is the main part in bitcoin network all the features of Bitcoin network are released only after passing through various security tests.
Keeping the identity of the user behind the address
Bitcoin transactions are not as anonymous as you may think. Because it has a public and permanent network to store the data, Also it will allow us to review for any balances and transactions from any bitcoin address, So to keep the address as unique, Bitcoin recommend us to keep the user identity behind the address of each transaction.
Best To Read: Things You Must Know Before Investing On Cryptocurrency Trading
Disadvantages:
Payments Are Irreversible
Basically, Bitcoin payments are irreversible! The refunds can only be issued by the person who receives the funds so it’s mandatory to double check the trustworthy of any businesses or individuals involved in this transaction.
Unauthorized Transaction Will Not Be Safe
Though it has some many security concerns yet still it has some drawbacks because there is no way to get back the amount if we lose it to the unauthorized persons which can be a big loss to the users. In order to maintain a proper security system, we must check with all the security points.
Some Of The Security points To Follow:
1. Never share your private key to anyone.
2. Backup your entire wallet.
3. Encrypt online backups.
4. Make regular backups.
Done! Reached the end! have covered all the basic up’s and down’s of Bitcoin payments. Hope you will find it helpful and there is lot more to know about Bitcoin so will surely post more blogs on Bitcoin in future. Also we expect your opinions on using Bitcoin wallets to come with more interesting topics so don’t forget to share your best experience of using Bitcoin apps. Thanks for reading and if you find it helpful then do share with your friends, On the go, don’t forget to subscribe us to receive more technical blogs & latest updates on your favorite frameworks and from diverse technologies straight to your inbox .
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