3 Essential Tips to Follow When Choosing a Bitcoin Wallet
Choosing the right Bitcoin wallet to keep your Bitcoins safe is really important! Here are 3 essential tips you need to keep in mind when choosing a Bitcoin wallet!
So, you have decided to get some Bitcoins, good for you! In this article, we will explain to you exactly what you need to consider when choosing a Bitcoin wallet. As you probably know, there are a lot of different Bitcoin wallets and the selection can be overwhelming sometimes. But, don’t worry as we’ve got your back. Before we present you the golden rules you need to keep in mind when choosing a Bitcoin wallet, here is what you need to know about Bitcoin wallets.
A Bitcoin wallet is just a program or a tool that helps you receive, as well as, send Bitcoins in a user-friendly way. It is like Gmail or Outlook that manage your emails. You will use the wallet to control and manage your Bitcoins.
You should know that the most important part of any Bitcoin wallet is the key or so-called private key. This key is a long string of numbers and text that act as a password to your account. You can consider it as a treasure map with certain coordinates to where your investment or in this case, your Bitcoins are located. In order words, you are the only one who knows the private key and if someone else knows your private key, this person can easily steal and use your Bitcoins.
A lot of wallets today utilize a seed phrase instead of a private key. The private key is replaced with random words (12-24 random words). Even though this may sound simple and stupid to you, it is really important. If someone steals the seed phrase, this person can easily control your Bitcoins.
We hope that you understand how important the private key, as well as, the seed phrase is to your Bitcoins. As a matter of fact, these are the most important parts of the Bitcoin wallet. They can be used to restore your Bitcoin investment, when the device you keep your wallet gets stolen, lost or destroyed.
Now, that you are familiar with Bitcoin wallet, we can present you the 3 essential things you need to keep in mind when choosing a Bitcoin to canada wallet:
- If you are going to store a large number of coins, we recommend you to use a cold storage – For those who don’t really know what a cold storage is – it is a term for any Bitcoin wallet that is not really connected to the Internet. In other words, a hacker won’t be able to steal your private keys or your coins. Some of the best cold storage wallets are Paper wallets (you write your private key on a piece of paper) and Hardware wallets (This is the most popular form of cold storage wallet). Paper wallets have one downside and that is that they can only receive Bitcoins and can’t send Bitcoins. With Hardware Wallets you can send Bitcoins.
- Software wallets are for change – If you want a more instant solution than cold storage, hot wallets are without a doubt perfect for you. A hot wallet is any wallet that is connected to the internet. There are two types of hot wallets – web wallets and self-hosted wallets.
- Back up your private key – The most important thing to do when you get your Bitcoin wallet is to immediately create a backup. There is a seed phrase you need to write down on a piece of paper and this seed phrase will help your coins safe.
Keep these 3 essential things in mind and they will help you choose the right Bitcoin wallet for your coins!
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