Bitcoin has actually been a revolutionary invention in recent years. A bitcoin is basically a cryptocurrency. A cryptocurrency stands for a digital asset to facilitate monetary exchanges. Bitcoin is a decentralised digital currency. This means that since all the transactions are a part of blockchain under a public distributed ledger no central authority controls it. A bitcoin can be used to make one on one exchanges without the need of intermediaries. For understanding bitcoin, you need to know its two divisions. These are:
- Bitcoin-the-token: Bitcoin-the-token is basically a piece of code which displays ownership of a digital concept.
- Bitcoin-the-protocol: It is a distributed network in the form of the public ledger that tracks or records the bitcoin-the-token.
What is a bitcoin wallet?
A bitcoin wallet acts as a storage for bitcoins. A bitcoin wallet helps you maintain a record of your borrowings, receiving and payments. Moreover, it also stores these records for you. A bitcoin wallet is of four types. These are:
- Desktop wallets: Desktop wallets are those wallets maintained and used on the desktop. You can have your bitcoin address and do the receivings and payings. Example of desktop wallets is MultiBit, Armory and Electrum, etc.
- Mobile wallets: Here the bitcoin work can be started one you install a paid app. After you install the app the wallet works the same as in the case of a desktop wallet. However one needs to be careful about which app you are using to facilitate your bitcoin exchange.
- Web wallets: You can actually say web wallet is a type of both. In other words, it can be used anywhere either on a laptop or a mobile. Some of the famous examples are Coinbase and Blockchain.
- Hardware wallets: These wallets store bitcoin on a physical piece of equipment or in hardware devices. This can be done by connecting your device to the laptop. However, these are not very secure since a few cases of theft have been reported. Moreover,r these are comparatively expensive wallets.
It is your duty to carefully choose the bitcoin wallet. Once you choose wisely then it is very helpful to you. Bitcoin is widely used because it is easy to use once you understand the method properly, it is cheap and is not centrally controlled.