What is Bitcoin
Bitcoin is a new currency that was created in 2009 by a person using the alias Satoshi Nakamoto. Transactions are made with no middle men – meaning, no banks! There are no transaction fees and no need to give your real name. More merchants are beginning to accept them: You can buy webhosting services, pizza or even manicures. In addition, international payments are easy and cheap because bitcoins are not tied to any country or subject to regulation. Small businesses may like them because there are no credit card fees.
Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured by the FDIC.
Key considerations when you choose bitcoin wallets
Control of private keys – Do you own and control your keys?
Backup & security features – Do you have seed backup keys and pin codes?
Developer community – Does it have an Active development community for maintenance?
Ease of use – Does it have an elegant User Interface for fast and easy use?
Compatibility – Is it compatible on different operating systems?
Do you need a wallet for everyday purchases or just buying and holding digital currency?
Do you plan to use several currencies or one single currency?
Do you require to access your digital wallet from anywhere or only from home?
Always remember the 3 rules:
- Always Backup your wallet, Always! (12 or 24 words phrase and keep it safe!)
- Always encrypt your wallet! (Password and pincode)
- Diversify your bitcoins across several bitcoin wallets