Storing Bitcoins

Bitcoin casinos are becoming increasingly popular and are becoming an alternative to traditional online casinos for an increasing number of players. Bitcoin is a constantly growing currency, with a growing number of online casinos opening their doors to it.

But before you can start playing at a Bitcoin casino, you need to buy Bitcoins and store them safely.

What is Bitcoin?

Bitcoin is a cryptocurrency (a digital asset) that allows transactions between two parties without the requirement of a banking entity. Bitcoin is free from government intervention, making it a relatively popular and increasingly used crypto payment option.

 

What is a Bitcoin Wallet?

To buy Bitcoins, you need a place to store them safely. Unlike fiat money, you cannot keep your Bitcoin funds in your bank account. Bitcoin is stored in digital wallets and these allow the payment processes (sending and receiving) of Bitcoins.

These digital wallets store, not the Bitcoins themselves (Bitcoin only consists of a record in the blockchain), but the private keys that allow you to validate transactions and move the cryptocurrencies.

There are four main types of e-Wallets. They are:

  • Mobile Wallets

Mobile wallets are typically compatible with either iOS or Android. Using touch-to-pay and NFC (near field communication) scanning of a QR code, mobile wallets can ease payments in physical shops.

This type of wallet offers the perfect balance between convenience and security. On the convenience side, you can send, receive and exchange cryptocurrencies easily through your wallet’s app. And on a security level, the best wallets for mobile devices require two-factor authentication, biometric login (facial recognition or fingerprint), and email confirmation for withdrawals.

Examples of mobile wallets are the Bitcoin Wallet and the Mycelium Bitcoin Wallet. It is advisable to research e-wallet options before deciding on one, as there is plenty of malware posing as Bitcoin wallets.

 

  • Desktop Wallet

Desktop wallets consist of a user address that allows them to send and receive Bitcoins. They are installed on a desktop computer, giving the user full control over the wallet and storing a private key.

There are plenty of free desktop wallets available, which you can download to your computer. Although it is a more secure option compared to mobile wallets, it is necessary to have access to the computer, running the wallet software, whenever you wish to send funds. Some well-known desktop wallets are Bitcoin Core, Armory and Hive OS.

 

  • Web Wallets

Web wallets are a fairly simple option for Bitcoin users, as they make it easy to access Bitcoins from anywhere. Whether you are accessing your cryptocurrencies from a mobile device or a browser, a web wallet ensures quick and smooth access.

In these wallets your Bitcoin funds remain with the exchange or broker you used to buy them. This is typically the least secure option available. The most popular web wallets are Coinbase and Binance.

 

  • Hardware Wallets

Hardware wallets offer the most security for storing your Bitcoin funds. They store Bitcoins on a physical piece of equipment and are virtually immune to virus attacks. In addition to funds being stored offline, you need to physically enter your PIN into the device. On the other hand, hardware wallets are the least convenient option for making transfers.

Unlike other Bitcoin wallets, they aren’t free and are priced at about €100.