How Bitcoin Wallets Work for Each Cryptocurrency

This short section will teach you how Bitcoin wallets work and will explore the main features and types of Bitcoin wallets. 

Understanding how do Bitcoin wallets work

Cryptocurrencies like Bitcoin need specialized wallets. This because of their digital nature and the necessity to store information, instead of tangible objects.

In essence, Bitcoins are representations of value on the Blockchain.

You can access this information with two unique codes:

• The Private Key – to access and use your Bitcoins. 
• The Public Key – to receive and request Bitcoins. 

So Bitcoin wallets do not literally store your coins but, instead, create a secure access point that allows you to access them on the blockchain.

What are the different types of Bitcoin wallets?

There are five main types of Bitcoin wallets. Each of them has different features and security measures. 

• Online wallets – a web-based service accessible through a web browser. Keep in mind they can be vulnerable to attack, so make absolutely sure you can trust the website.
• Mobile and Desktop wallets – these wallets can be installed on a smartphone or PC, making that device the unique point of access to your Bitcoins. 
• Hardware Wallets – these are specialized physical devices that are specifically built for the highest levels of cryptographic security. 
• Paper Wallets – these are printed pieces of paper with your wallet credentials. They make an excellent option for offline storage.

How can I choose a Bitcoin wallet?

There are three main aspects that you should consider when choosing your Bitcoin wallet: 

• Accessibility
• Security
• Price 

Finding a wallet that fits all three isn’t always easy; for example, a hardware wallet is accessible and very secure, but it isn’t free.

At Paybis, we’ve created our own Bitcoin wallet specifically to address all three points. It is a free online wallet, which makes it very accessible, and we do not place any restrictions on it. We understand that online wallets can be vulnerable, so we take security very seriously. Your wallets are protected by the same industry-leading standards as your data.

Please note that you’re free to use any wallet of your choice at Paybis. We won’t charge any withdrawal fees or place any restrictions on your crypto. Still, if you’re looking for a free, safe and accessible BTC wallet, the Paybis wallet is worth checking out.

Written by

Dimitris Tsapis