What is Bitcoin Account and how is it created?
Bitcoin account is simply best called bitcoin wallet is simply an account owned and managed by a bitcoin owner for storing his coins. It is just the same as local bank account even though it does not work same way.
It is no news that bitcoin is one the most widely recognized and accepted cryptocurrency. Bicoin account is also called bitcoin wallet . It houses the private key also called seed which is used to sign transactions providng a proof that the transactions originate from the actual owner.
This signature also prevents the transaction from being altered by anyone else once it has been issued. It should be noted that due to the delicate nature of bitcoin and other cryptocurrencies, a bitcoin owner should make sure that he uses a very safe and secure wallet for his bitcoin.
Immediately after buying a bitcoin, the bitcoin owner is expected to immediately transfer it to the wallet. This is because, cryptocurrency exchanges are mostly the first target for hackers. So it is of utmost important to store your bitcoin in your personal wallet .
In considering the types of wallet available, it should be pointed out wallets are classified basically into
- online wallet
- Hardware wallet
- mobile wallet
- Desktop wallet
- paper wallet
Hardware wallet is in a way similar to an external hard drive but highly optimized for cryptocurrency storage. It is rarely connected to the internet, hence being called cold storage. This makes it difficult to be hacked. Hardware wallet, much as it has advantages, is also not without disadvantage. One of the greatest disadvantage is that it is expensive.
Examples of hardware wallet includes
c. Keepkey etc
Desktop wallet: This simply involves downloading the wallet software onto your desktop. Examples of Desktop wallet are :
Mobile Wallet: Mobile wallet allow users to store funds in their mobile devices. Examples include:
b. Green Address
Online wallet : The greates advantage of this wallet is its easy accessibility . Examples of online wallet are:
a. Blockchain wallet
Paper wallet: Examples of paper wallet includes :
It should be noted that hackers work day and night in search of a bitcoin wallet to hack. so it is of utmost importance that a bitcoin owner should take every necessary step to secure his wallet. An unsecured wallet is an unsecured asset. Every bitcoin owner should endeavor to use a secured wallet in addition to being careful not to disclose his private key to anyone.
Finally Bitcoin wallet is created by first downloading the needed App and then signing up using the stated guide.