What is Bitcoin?
Bitcoin is a form of electronic cash. It is a decentralized digital currency that works without a central bank or single administrator that can be sent from user to user, anywhere in the world, without the need for intermediaries.
In order to transact in Bitcoin and to own Bitcoin in a Bitcoin Wallet a user needs to have three things: a Private Key, a Public Key, and a Recovery Phrase.
What is a Private Key?
In the context of Bitcoin, a private key represents a secret sequence of numbers and letters which allow Bitcoins to be spent. Each Bitcoin wallet contains at least one, or sometimes more, private key. The keys are saved within the wallet file and are mathematically related to all of the Bitcoin public addresses which are generated for the wallet.
Put simply, this is your "ticket" which will allow you to spend your Bitcoins. As such, it is quintessential that you keep it secure. This is the reason for which all reputable cryptocurrency exchanges put the emphasis on advanced privacy when it comes to storing your digital assets.
What is a Public Address?
Your Public Address is the location of your Bitcoin account -- it is the shareable sequence of numbers that allows other users to send you Bitcoin. Presenting your public key alongside your private key enables the Bitcoin blockchain to authorize the transfer of Bitcoins from your account.
What is a Recovery Phrase?
Simply put, a Recovery Phrase allows you to re-create your Private Key in case you lose it. Since Private Keys are very long sequence of numbers, they are hard to input manually, if you backed them up in a printed piece of paper. A Recovery Phrase is a series of 12 words, that if put in, in the correct order, algorithmically allow you to recreate your Private Key alongside your Public Address. Safely storing your Recovery Phrase is essential to your ability to restore your wallet in case you lose the device where your private key is stored, i.e. where you have your Bitcoin Wallet.
So, what is a Bitcoin Wallet?
A Bitcoin Wallet represents a software program which stores Bitcoin (BTC) private keys. When you create a Bitcoin wallet you are simply creating a Public Key, a Private Key, and a Recovery Phrase.
DoWallet is an HD Crypto Wallet, which means that users can hold multiple cryptocurrencies at the same time and multiple Bitcoin Wallets on the same device, using a single Recovery Phrase. DoWallet currently supports Bitcoin, Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC), and will soon support other major cryptocurrencies, like Ripple (XRP), Dash, BAT, and Monero. DoWallet is the Best Bitcoin Wallet.
Different types of Bitcoin Wallets
There are three major types of wallets: custodial, desktop, mobile, and hardware (cold storage).
A custodial wallet is when someone else holds your private keys for you. Most exchanges, like Coinbase, act as a custodian. The upside of these kinds of wallets, is that you don't have to worry about losing your private keys. The downside is that you don't have full control of your account and you are still trusting an intermediary to manage your assets -- which defeats the purpose of a decentralized system.
Desktop wallets, as the name suggests, are installed on your computer's desktop. These types of wallets offer full control over the software wallets. They enable the user to generate a Bitcoin address for buying and selling bitcoin. Naturally, they also allow the user to store their private key.
A mobile wallet like DoWallet, on the other hand, provides for more convenience, as they aren't fixed in one place. A mobile wallet would allow you to do the same things as a desktop wallet. One notable advantage is the fact that a mobile wallet could enable you to receive payments and make direct payments in physical stores which accept digital currency by scanning a QR code. DoWallet, besides being just like other Bitcoin Wallets, includes additional contextual information, like real-time markets, and news in your language. DoWallet also lets users link their different exchange accounts to monitor all their crypto assets in just one place. Naturally, DoWallet also allows users to store their private key on their device.
A hardware wallet, or a "cold storage" wallet, is essentially, a hard drive that is disconnected from the internet, so that it safely stores your private keys in a place that is unreachable by any hackers. For users who want to store large amounts of Bitcoins and not use a custodian service, the safest option is to use a hardware wallet like Trezor.
Three questions to ask yourself to choose the Best Bitcoin Wallet for you:
1. Do I want to be the custodian of my private keys?
2. Where and how do I want to be able to use and transact in Bitcoin?
3. How much money do I want to keep in the wallet?
Once you have answered these, you will be able to make a better decision choosing the best bitcoin wallet for you. We recommend a combination of all types. A custodian exchange account in order to exchange fiat for crypto and crypto for fiat, a mobile wallet to control and transact day to day, and a hardware wallet to store the majority of your Bitcoins and other cryptocurrencies safely.
Taking this approach of collaboration with other wallet types since we have launched DoWallet in mid February 2019 -- we have organically seen users from more than 80 countries downloading and using the app, with great reviews. The most obvious explanation for users' initial satisfaction is because, besides offering a best-in-class Bitcoin Wallet, we have focused on other elements that go around the wallet -- like supporting 37 languages and 60 fiats, and providing 24/7 customer support in every user language. We also have an exciting list of future features that we hope continue to delight, like the ability to buy Bitcoin directly from DoWallet from anywhere in the world at low cost, so keep posted on our developments.
So What is the Best Bitcoin Wallet for you? Try out DoWallet.