Frequently Asked Questions About Bitcoin Wallets

Frequently Asked Questions About Bitcoin Wallets

A bitcoin wallet is one of the most important things to have when looking to invest in Bitcoin. Without it, you cannot receive, send or store Bitcoins. A Bitcoin wallet contains your private keys that secure your Bitcoins. That means nobody except you can access the private keys and use your Bitcoins. Let’s look at some of the frequently asked questions about Bitcoin wallets:

Could you define private keys?

In a layman’s language, a private key is like the password to your bank account. You already know the importance of your bank account password. If someone gets it, they can empty out your bank account. That’s why you have to guard it at all costs. A private key is a password to your Bitcoin wallet. Only you have the keys. If you want to sell or receive Bitcoins, you’ll be required to enter the private keys first. Keys come in two forms; the private and public key. Only you have access to the private key. But everyone else has access to your public key.

Define Bitcoin address?

Your Bitcoin address works the same way as your account number. The address is where Bitcoins will be sent to.

Can you explain how someone can generate a Bitcoin address for their wallet?

Generating a new Bitcoin address differs from one wallet to another. Some wallets are designed to manage the addresses on your behalf. Others give you the liberty to manage your address. You can generate the Bitcoin address yourself, but if you want quick verifications of the transactions, you’ll have to pay miners a little more to do it.

What methods can I use to fund my Bitcoin wallet

The first step to funding your wallet is to acquire Bitcoins. You can acquire Bitcoins by mining or buying. The most convenient way is to buy. You can buy through Bitcoin exchanges. For example, if you want to buy Bitcoin in Canada, you can use the most popular Bitcoin exchange known as Coinbase. You can then give the exchange your wallet address, and they transfer the coins to your wallet.

What techniques can I use to secure my wallet?

Always use a secure computer when accessing your wallet by installing a strong firewall. Change your Bitcoin wallet address frequently. It’s recommended that you use a different wallet address for each transaction. Use a two-factor authentication or multi-signatures to access your Bitcoins.

What are the main mistakes Bitcoin owners make?

Storing their Bitcoin in an exchange wallet – it’s recommended that you store your coins where you have complete control of.

Storing their Bitcoins in one place. Doing this is risky because when you lose your wallet; all your coins will be lost

Not triple checking the target address. If you send Bitcoins to the wrong address, the transaction can’t be reversed. ‘Always triple check the wallet address before you send your coins.

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