Being familiar with the terms before jumping into a new adventure is always good.
The Bitcoin adventure already shines golden, but by knowing the key terms, you will see it shining bright in front of you!
Let’s get started. Shall we?
What is a Bitcoin Wallet? 👛
While you keep your money in your physical wallet or in your bank account, you keep the bitcoins in a different wallet. The wallet stores all the information to verify that you own the coins you may have in your wallet. The most significant difference is that the Bitcoin wallet is connected to the distributed ledger (the blockchain), where the ‘coins are stored. The wallet is used to take out the B’coins or to receive.
What is a Crypto Address?
A crypto address has nothing to do with a kryptonite or a crypt. It may be cryptic, but for a good reason. The crypto address contains a combination of numbers and letters, which is unique. This is what you share with others when you receive crypto funds. No address exists twice, and retrieving a new one from your wallet is always recommended; therefore, never use an old one more than once.
It’s like a mail address. They can contact you when you share your email address but have no insight into your inbox. The only difference is that you create a new crypto address every time you receive funds, but for mail, you maintain only one address.
Here are some examples of public crypto addresses:
- 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa
- 3EmUH8Uh9EXE7axgyAeBsCc2vdUdKkDqWK
- bc1qwqdg6squsna38e46795at95yu9atm8azzmyvckulcc7kytlcckxswvvzej
What’s the Key (doin’ here)? 🔑
By holding a Bitcoin wallet, there are two forms of keys you should know about. It’s a private key versus a public key.
- What is a private key?
- The private key is a secret combination of letters and numbers. However, the private one proves you own the sent coins from the address. It’s, so to speak, a signature created by the wallet itself, if you want to say that.
- What is a public key?
- A public key is used in the transaction to verify if the owner of the linked address has created a valid signature for the proof, aka a private key. The key will never be seen or used from a general user perspective.
What Is a Seed Phrase? 🌱
A seed phrase in terms of crypto is a security word you need to remember. The seed phrase will be used if you have trouble accessing your wallet. By confirming the phrase words, you can recover your access to your wallet. Keep the seed phrase somewhere safe and secure. If those are shared, it means the person can steal your Bitcoin.
Back to the Wallets
There are different ways you can maintain your wallet. Now, we are looking closer at what types of wallets are out there and what would be best for Aussie players to use!
- What is a hardware wallet?
- This kind of wallet is a physical item dedicated to creating and storing your private keys. They usually have the appearance of a USB stick. Most of the hardware wallets are viewed to be more secure compared to any software wallet. This is because the hardware wallets are not constantly connected to the internet. Being offline may be a safety point; however, they are less convenient to set up.
- What is a desktop wallet?
- This type of wallet is an app on your computer. It usually has more functionality than a mobile wallet, but it might be complicated for some. Being constantly connected to the internet, you might be extra careful when installing other apps or accessing links or websites you don’t know. Possible malware can be a huge threat!
- What is a mobile wallet?
- Crystal clear, this wallet is installed on your mobile. Since you always have your mobile, you can access your ‘coins everywhere. However, the risk coming along with it is. If you break your phone or if it gets lost, you might have difficulties accessing your crypto funds. But if you have your seed words ready, you are safe.
The mobile wallet is great for beginners; it has fewer functions (compared to the desktop wallet) a better overview, and after one is confident with sending and receiving the ‘coins, a hardware wallet may be switched to.
- Crystal clear, this wallet is installed on your mobile. Since you always have your mobile, you can access your ‘coins everywhere. However, the risk coming along with it is. If you break your phone or if it gets lost, you might have difficulties accessing your crypto funds. But if you have your seed words ready, you are safe.
Now that you know the crucial terms, you are ready for the best Ozwin Casino pokies!
