Important Things to Know Before Opening a Bitcoin Account
In a few years, the digital currency has become the most fascinating thing among investors. More people are moving towards investing their money in digital currencies. Bitcoin is the leading currency among other cryptocurrencies. Despite the popularity of Bitcoin, there is chaos in the market that the Bitcoin market is a scam.
In fact, Bitcoin investment or trading is truly a risky activity. And you have to spend some time learning the basics and practicing before you really engage in it. You need a setup to invest in Bitcoin, we’ll be able to do that here.
Set Up for Bitcoin Account
Bitcoin account is a digital wallet through which you can make your transactions. This is also termed as Bitcoin Wallet. This bitcoin software allows you to buy, sell, and hold bitcoins in your account. Let us know something more about a Bitcoin Wallet.
A Bitcoin Wallet is a software that allows you to store Bitcoins. To be more precise, it would be better to say that a secret key is saved in the Bitcoin wallet instead of saying that Bitcoins are stored. The secret key is a key used for every Bitcoin address you own. This may look confusing at first, once you get used to it, you can understand the whole process.
Types of Bitcoin Wallet
The Bitcoin Wallet is intended to send and receive Bitcoins within the network. Furthermore, everything operates from a decentralized framework. Which means that no third party is involved in this process like any government, or any financial institution. Bitcoin Wallets are of two types: Software Wallet and Hardware Wallet. Software wallets are available in three versions desktop, mobile, and web versions whereas the Hardware Wallets are devices that can be plugged into USB ports of a system.
As the name suggests, a desktop wallet is meant for a desktop computer or PC where you can make all your transactions. The main concern about this is that you can perform your transaction only from one place where the wallet is installed. The first thing you need is to download a Bitcoin Wallet. This is a simple task, but the challenging part is to choose an authentic and genuine wallet.
It is as if you were running a web program on your smartphone. Like other digital payment methods, the entire process is often supported by a Bitcoin mobile wallet. But you have to pay some amount to use the wallet. You can do your Bitcoin transactions from your smartphone anywhere. There are a number of mobile wallets available for both Android and iOS, but be cautious before choosing a mobile wallet.
This Wallet type can be used from anywhere, and from any laptop. Ensure that your passwords are kept secure and that all your information is saved online. One more thing is that many fake websites are there who offer web wallets, so make a good research before you choose a web version.
The hardware wallet has many advantages over software wallets of any other kind. This is Bitcoin Wallets ‘most safe type because the private key can’t be transferred without the computer. However, this form of the wallet is not free, it costs around 100$ to 200$.
The key concern about the Bitcoin wallet is to keep your account secure. If you choose a wallet on the web then make sure your password is safe. Moreover, never leave a huge amount on your digital account. If you are using a desktop or mobile wallet, always keep a backup. Now you can start investing in Bitcoin by setting up a Bitcoin Wallet of your choice.