A Wallet resembles a current account in a bank, which makes it different, is that with a Wallet you have total control of the cryptocurrencies that we keep and you can send and receive money freely, without intermediaries and autonomous Then the Wallets are basic computer programs that allow you to make custody of your Bitcoin through the Internet to authorize a monetary transaction.

Basic information of the Wallets

In such a way that if we want to store the cryptocurrencies or digital coins that is what is called Wallet. It is not required to have large and extensive knowledge of technicalities to operate a Wallet, but if it is necessary to have knowledge to be able to handle Bitcoin Technology, that is, it is essential to know that, for the protection, transaction and custody of Bitcoin, it is necessary have two unique keys that your Wallet will automatically and randomly generate a private key and a public key.

The private key

It is a kind of password that should never be shared, because that would mean giving full access to stored cryptocurrencies. This private key looks like the password for accessing the bank account or the credit card PIN, if you know it, another person will have access to the funds of your Wallets.

The public key

As indicated by its name is free knowledge, we can share it with whomever we want, it only allows the receipt of coins. This key has a similarity with the bank account number, whoever has it can send money if they wish, but they will not be able to access the funds in the account. You have to understand that the public key depends on the private one. Having both keys does not matter if an incident occurs with the computer, with the Tablet or your mobile stops working, you only need to install the program or application on your computer or Tablet and proceed to restore the account by entering your private key

Types of Wallets

They can be classified in different ways that go from lower to higher security, you have the Web, the Internet, on your mobile device, in your App, the Hardware, with the printed key to open it in an application and the paper. Likewise, the Wallets are differentiated, depending on the use that is given and hence there is the Hot Wallet or hot purse and Cold Wallet or cold purse.

Differences between types of purses

Think of the way you normally use physical money, keep an amount in the bank, and carry another part in your pocket for minor expenses, that’s the difference between the two digital wallets, the Hot Wallet is the money in your wallet or pocket , so that if you lose or steal the key is not so much problem. In contrast, the Cold Wallet is your bank account in which you keep large amounts of cryptocurrencies that you will not use for a while, which is what is usually called Cold Storage or cold storage.

Creation of the Cold Wallet

When it comes to Bitcoin and for your security, you copy the free BitAddress project in an optical pen without infection, then open it through a Linux Live CD distribution (Tails, Ubuntu) without having an Internet connection. Then you open the index.html file. And finally, you go to BitAddress.org and move the mouse pointer over the Web, in this way you achieve a random and unique key that appears on the screen next to another public key. Now if you can safely send your Bitcoin to the created address, be careful to save your private key well. In this way your Cryptocurrencies will be safe for a long time despite much Cold Storage that you do. That is to say, that even if you have it there for a long time, nobody will be able to take it away from you.

What do you think about this topic? Do you think that the cold wallets seem safer?

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