Just like normal currency even bitcoins can be stolen or lost and need means for safekeeping. So bitcoin wallets are a place one can keep this special currency safely but unlike banks for bitcoins these wallets are really a safe and secure place where there are two keys required to complete a transaction. Of these two keys one is public and the other is a private key and only the wallet has the details of the two keys. There are two different types of wallet of these one is an online wallet and the other is a paper wallet.

In case of electronic or online wallet the two keys are saved online or in the hard-drive of the computer and to keep your funds safe one has to ensure that nobody gets n access to the private key of the account as one can easily withdraw the funds and do anything with it. I case of this wallet there are chances of attacks by hackers or malware that can log your keystrokes and get an access to the account. Another disadvantage of this type of bitcoin wallet is that the PC can get stolen or the hard-drive can crash and one can end up losing the entire bitcoin treasure.

So a comparatively safer option is the paper wallet where the digital coins can be transformed into a physical paper form using just a printer. In case of the paper wallet there is a document that contains copies of the public and private keys. Here one can find the QR codes which can be scanned later and added in the software wallet to complete the transaction and if used with care, a paper wallet can protect the bitcoins from possibilities of loss and theft commonly seen in case of electronic and online wallet.

However it two has its own shortcoming that is there are chances the paper and ink can degrade, and as the paper is relatively fragile – it’s definitely worth keeping well away from fire and water for obvious reasons.

Tags: , , ,

Leave a Reply

We use cookies to give you the best online experience. By agreeing you accept the use of cookies in accordance with our cookie policy.