Bitcoin Wallets 101

We’ve been discussing Bitcoin recently.

Click here to learn Bitcoin basics

Click here to learn about Bitcoin mining.

Once you get your hands on Bitcoin, you keep it in a wallet. This wallet is way different from the one in your pocket.

Let’s check out how it works.

A Bitcoin wallet is a place where you store your digital currency. We told you about the guy who lost $250 million because it was trapped in his Bitcoin wallet. (Click here to read that story.)

A bitcoin wallet is a program that keeps track of your bitcoins. It allows you to send, receive, and store them. These programs interface with the Bitcoin Ledger.

Wallets have a private key. The key is the password to your wallet and consists of a very, very long string of letters, numbers, and symbols.

Whoever has the private key controls the Bitcoins in the account. The key also generates your Bitcoin address which is like your bank account number. That’s where people who wish to pay you Bitcoins send them.

You must keep your private key safe and you certainly don’t want to share it with anyone.

Make sure to back up your key in a safe location.

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