Bitcoin Wallet is not Black Hat!

Bitcoin is a Decentralized Digital Currency. Unlike actual Wallet which actually holds the money, bitcoin wallet does not actually hold the bitcoin. The Bitcoin is stored in the Block-chain stored record that’s actually don’t need your wallet to be Open to accept the Bitcoins. You want to sign the bitcoin transaction with your private key and which will gets stored in your bitcoin wallet.

Types of Bitcoin Wallet

Bitcoin Wallet allows you to receive bitcoins, store them and then allows you to send them to others. There are 2 main types of bitcoin wallet and they are Hosted wallet and software Wallet. Software wallet can be installed on your own computer or mobile devices which keeps you in a complete security of the bitcoin. But the problem arises with the configuration and setup which may look tricky to do it. A Web or Hosted Wallet which will be hosted by the third party. It will be very easy to use but the provider must be a trusted one to provide a high level of security to protect our Bitcoin. It’s not an easy task to collect the Bitcoin. A new bitcoin is created during the bitcoin mining process. It will be generated by solving the transaction puzzles and got accepted by the members in that network.

How to Use the Bitcoin Wallet?

  • Open an Account in the Bitcoin Wallet
  • Choose the Strong Password (One Important thing is that there won’t be an option to reset the password. So you must keep your password safe without forgetting it. )
  • Recommended to Associate an Email Address with the current account to use it for Backup purposes.
  • Now, You are having a Bitcoin Address through which you can receive the payments.

The Bitcoin Address alone is enough to send money directly to this account. Anyone with your Bitcoin Address may analyze your transactions and they may estimate that how you Own the bitcoin.
Best Option is to generate the new bitcoin address for each transaction to increase the anonymity.

Importance of Bitcoin Address

To make your transaction private it’s important to generate the dynamic bitcoin address for each transaction that you do. But the Nature of the Bitcoin Block-chain is an Open Ledger through which anyone can view your transaction and it makes very difficult to maintain the privacy. The easiest way to create privacy is to create dynamic bitcoin address for every transaction. You can use the unique address for each transaction. Either you receive from any or if you are sending to any it’s better to have the new bitcoin address for each transaction so that it’s difficult to trace or track the transaction.

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