When you need to store or spend your funds, you need bitcoin wallets. They contain private keys that you require when you need to find your bitcoins. These wallets come in different forms and are designed for different types of devices. You can store the private keys in the form of paper so that you can avoid using your computer to store them. People are advised to have a back in their wallets for security purposes. Therefore, you may choose to store the wallet in the form of paper and computer as well.
Bitcoins have become very popular in the modern day. They are like any form of paper money used in the exchanges for goods and services. They are mined and generated in digital platforms. This is also the case with the storage; where many people opt to store to store them in a web and software wallet.
Misconceptions about Wallets
The major misconception when it comes to answering the question as to what is a bitcoin wallet is that people think that a wallet is a physical place, like a bank account where one can store the bitcoins. However, this is not the case. These wallets are just places where you store the private keys that allow you to access your bitcoins.
You can have your wallet in various forms, including desktop wallets, mobile wallets, online wallets and hardware wallets. Desktop wallets are also known as software wallets and will help you run your bitcoins coin transactions from your computer. If you still want to run your wallet while travelling or in mobile places, then the mobile wallet will do it for you.
You can store your private keys on your Smartphone and hence run the wallet from the gadget. Online wallets are also known as web based wallets and you have to store your private keys on your computer which is connected to an internet. Hardware wallets hold the private keys electronically and will facilitate payments of bitcoins.