Before people could acquaint themselves of the cryptocurrency realm and own some of it, it was already on a new high. Soon after its launch in the early 90s, it took off like anything. Well! That’s how treacherous the lane to digital cash is.
As a quick brief up, cryptocurrency refers to the digital currency, that is, cash or financial assets owned online, and can be transacted therefrom. It is actually used as medium of exchange and can be transacted to alter to tumefy or contract the balance held by the owners.
What is a bitcoin wallet?
To procure and store the cryptocurrency, users need to have an online wallet, wherefrom they can carry out the basic functions. The very first ‘decentralised cryptocurrency’ was launched in the form of an open source software in 2009, and called Bitcoin. Soon after its launch, a number of its alternative variants came up, and over time many more cryptocurrencies emerged under different names.
Now, bitcoins are stored and transacted from an online wallet, called Bitcoin wallet. Precisely it is not a wallet, rather holds the ‘key’ to the owners’ electronic cash and wealth. Each bitcoin is assigned a distinct value and is addressed through a ‘secret identification number’. This secret is for each bitcoin and feeding this into your device takes you to your crypto balance. There are many types of bitcoin wallets in operation today, of which the 4 major ones are desktop, mobile, web and hardware.
Possible issues that the holders might have to face
With wealth comes a handful hitches that insinuate the owner to play really safe. However, bitcoins are digital currency and faces some real world technology drawbacks. Because bitcoins wallets are maintained online as well, there are high chances that certain malwares may scan your device, fetch the secret keys and boom! All your digital assets are lost in a go. That is why it is always advisable to opt for an offline bitcoin wallet that does not need internet connection.
Again there are Trojans that may encrypt your device, find your cryptocurrency balance and demand the exact same amount for decryption. The world of cryptocurrency is far more adventurous than it looks at first. Meant for some typical intrepid investors, playing safe can make you a millionaire in a matter of seconds.