What is a Bitcoin
Wallet?
A “wallet” is
basically the Bitcoin equivalent of a bank account. It allows you to receive
bitcoins, store them, and then send them to others. There are two main types of
wallets. A software wallet is one that you install on your own computer or
mobile device. You are in complete control over the security of your coins, but
they can sometimes be tricky to install and maintain. A web wallet or hosted
wallet is one that is hosted by a third party. They are often much easier to
use, but you have to trust the provider to maintain high levels of security to
protect your coins. There are four main wallets that we recommend for
beginners.
Coinbase
Coinbase
is a web wallet with a simple design and a number of very useful features that
make it excellent for beginners. You can send and receive bitcoins via email
and buy and sell bitcoins directly from Coinbase. A full-featured Android app
enables access to all account functions on the go. Coinbase’s founders have a
proven startup track record and have raised money from very prominent venture
capitalists. This gives Coinbase a level of legitimacy unparalleled in the
Bitcoin space. They are also one of the only large Bitcoin companies to never
suffer a major hack.
Electrum
Electrum
is a software wallet that enables you to set up a strong level of security very
quickly. During the simple installation process, you are given a twelve word
phrase that will allow you to recover all of your bitcoins in the event that
your computer fails. Your wallet is also encrypted by default which helps
protect your coins against hackers. Electrum is available for Windows, OSX, and
Linux and is our recommended software wallet for beginners.
Blockchain.info
One of the quickest
and easiest ways to get a Bitcoin wallet is to simply go to Blockchain.info
and fill out their brief requirements. Blockchain.info is another web wallet
like Coinbase and provides a simple setup and mobile access to your account via
their Android app. They also provide a number of other useful services to the
Bitcoin community.
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