Store digital currencies

A wallet for digital currencies such as Bitcoin, Litecoin, Ethereum Ripple & Co stores the private keys each user needs to access a Bitcoin address and receive or send credit. There are several ways to keep Bitcoins and other digital currencies safe and at the same time obtain an address.

The following options for storing digital currencies are available to the Bitcoin trader

Bitcoins are a state-of-the-art equivalent to cash and according to onlinebetrug this is not a scam. Every day, the number of companies that accept Bitcoin as a means of payment increases. In addition to knowing how Bitcoins are minined and how a Bitcoin trader transaction is executed, it is essential to understand the various ways Bitcoin can be stored.

Strictly speaking, from a technical point of view, one does not store Bitcoins, but rather stores the digital keys with which one can access a public Bitcoin address and authorize a transaction. This information about the digital keys is stored in a Bitcoin wallet. As shown above, Bitcoin Wallets can be divided into five different categories, the properties of which are described in more detail below.

Desktop Wallet for the crypto trader

Anyone who has already installed an original Bitcoin crypto trader client (Bitcoin Core Wallet) is already using a wallet – perhaps without knowing this. In addition to forwarding transactions in the crypto trader network, the software can generate a Bitcoin address to receive and send Bitcoin credit and to store the corresponding keys.

However, there are also many other desktop wallets that offer different features. MultiBit runs under Windows, Mac OS X and Linux. Hive is a Mac OS X based wallet with some unique features including an app store with access to various Bitcoin services. Some desktop wallets, on the other hand, are aimed solely at security: the provider Armory, for example, falls into exactly this category. Other wallets such as DarkWallet rely on anonymity. This wallet is a browser plugin that uses a coin mixer to exchange users’ credit balances with each other, making tracking more difficult and concealing identity more difficult.

Mobile Wallet
Desktop wallets are very impractical when it comes to paying in shops or on the street with Bitcoin. This is where mobile wallets come in. Mobile Wallets are installed as an app on the smartphone and store the private keys directly on the mobile device. This means that Bitcoins can be received and sent in a matter of seconds using a mobile phone.

Some mobile Bitcoin Wallets even support Near Field Communication (NFC) technology. The smartphone simply has to be held to the terminal and no scanned QR codes or a Bitcoin address are required.

However, all mobile wallets have one characteristic in common: they are not fully-fledged Bitcoin clients, because they would have to download the constantly growing blockchain, which is now several gigabytes in size. This would probably exceed the data volume of many mobile phone users and is therefore not suitable for the market. This is why almost all mobile wallets use Simplified Payment Verification (SPV), which only downloads a small part of the blockchain, but which is completely sufficient for a secure transaction.

The providers of Android and iOS wallets include Jaxx (Bitcoin, Ethereum Litecoin, Dash, etc.), Bread Wallet, Bitcoin Wallet, Mycelium, Xapo and Blockchain. They store the keys encrypted on the mobile phone and also create a web-based backup copy.