How To Store Bitcoins
When you’re starting out in Bitcoin sports betting, one of the first things you should keep in mind other than understanding what is Bitcoin is exactly how to store bitcoins. A Bitcoin wallet is the only way to store your stash of bitcoins. They store the private keys that you will need to access your Bitcoin address and to spend or trade your funds. However, you don’t just use the first wallet you find on the Internet. Wallets come in different types and they each have their own purpose. There are three common types of wallets: desktop, mobile, and online.
Do you have the original Bitcoin client installed? Then you already have a desktop Bitcoin wallet. It does all the basic processes of transactions on the blockchain network like creating Bitcoin addresses for sending and receiving Bitcoin. The core wallet is the most basic one, though. There are dozens of other desktop wallets out there, usually linked to one exchange or the other. Their main trait is that they are available on the desktop.
There are also mobile wallets. These are more useful for those who are on the go. Desktop wallets are great for online shopping but when you’re on the street and want to pay something via bitcoins, then you will most likely would only be able to use your smartphone.
One of the most interesting effects of using a smartphone is the use of a smartphone’s near-field communication (NFC) feature. This allows people to just tap a phone against a reader and it starts an easy transaction.
The main feature of mobile wallets is that they are lightweight. Full Bitcoin clients have to download the entire Bitcoin blockchain. This would be very time-consuming for a smartphone. This is why mobile wallet use simplified payment verification (SPV). They just download a part of the blockchain for the transaction, while letting the network do the heavy lifting.
Finally, there are online wallet services. They work by storing the private keys that allow you to do Bitcoin transactions in a remote server. The main advantage of web-based services is that they are not dependent on your device. You may not have a PC or a smartphone on you, but you can probably find an internet café where you can log on. Such services commonly link up to actual wallets and can sync up with them. The main problem with this approach is that you are giving someone access your private keys. Only do this with trusted provides like Coinbase, which operates an integrated wallet/Bitcoin exchange operates its online wallet worldwide.