The Bitcoin Wallet is neglected in terms of importance by some beginner bitcoin traders, as those think that bitcoin transactions are as simple as buying products from eBay with your card. In the case of bitcoin, there are many organisms implicated in trading, some of those having personal and obscure interests. As the coin was used by hackers in their transactions, and those understood how the bitcoin is traded, it is important to be spared of the actions of those, and to protect you. Let’s see why do you need a bitcoin wallet, and how can you secure and create it.
1. On your personal computer
Enter bitcoin.org and choose one of the available clients. This is installed on the computer like any other program. Once it is installed, you will have to be patience for a few hours until the latest updates and the general state of the bitcoin world is updated, but once this is over, you will have your own bank at your disposal.
This is the method for people that don’t trust having their e-wallets hosted on websites, but you will have to take care of security on your computer if you are using this method. As a part of the bitcoin world, maybe it is better to choose a website for your wallet, as the transactions would be simpler and more effective this way.
You can use several services to create your online bitcoin wallet, the simplest of them being the one from blockchain.info. Here, you need to hit the “Start a new wallet” button, and to choose a password. Write your password down and make sure not to lose it, as it is really important.
You will be provided with a link that looks like an alphanumerical string, a combination of letters and numbers. This must also be saved.
Whenever you access that link, you will have to introduce the password. This way, you will have access to your account.
In the left side of the wallet screen, you have the Bitcoin address. That is your account, and whenever somebody pays you with BTC, the money will be sent in that account. You can add funds with your cell phone, or with an SMS, and the money can be withdrawn with MoneyPak.
There are even mobile applications for Android and iOS that allow you to create and manage e-wallets.
The advanced methods of creating wallets benefit of more security. For example, you can have the hybrid eWallet, which means that the coins are stored in your browser, as an encrypted copy of the details that you have stored with Blockchain.info. However, this can’t be accessed with the password, and you can’t spend money with this method, but it is a great method to check your wallet whenever you need.
The wallets can only be accessed by identified users, and this is why you need to bookmark it.
Although the websites offering ewallets have their security measurements and backup possibilities, it is a good idea to keep a copy of your ewallet. This can be made by configuring an email setup, and this way, you can request a backup any time. The backup is secure, as it is based on encrypted methods, but if you want to hold large balances in your wallet, you will have to ask your provider to give you additional security methods. As said before, the bitcoin transactions are anonymous, so if you are stolen, you can’t request a chargeback like in the case of PayPal and credit cards, so you need to be sure that you benefit of the best security methods.
A complete ewallet solution for commercial usage is also given by Blockchain, free. However, you don’t have to abuse those.
Blockchain recommends BitPay as a Business Bitcoin solution. BitPay offers a large variety of services, including automatic conversion, local and integrating services, and even a program for the bitcoin shopping cart. Besides the users that want to create ewallets and to use those for personal purposes, BitPay is the best solution for webmasters that want to integrate this payment method on their websites.
The Google Wallet Blockchain is capable of working on a bitcoin BTC server, so different users
Why is the bitcoin wallet important?
There are talks about introducing bitcoin ATMs across the world, especially for countries that suffer financial problems, such as Cyprus. From those ATM’s you can exchange bitcoins with the national currency for the respective country, in an anonymous way. This is why it is important to have a solid and reliable wallet, which can be used for ATM and online transactions.
The ATMs work on an automatic system with a two-way principle for bitcoin exchange. The bitcoins can be exchanged with cash this way, so you can transform your bitcoins in national currencies and the other way around in the fastest way possible.