Best Bitcoin Wallets

A brief Bitcoin history.

The Bitcoin appeared in 2009 but the origin of the technology it is based on began even earlier. Just imagine that if you had invested 1000$ in these crypto coins then, now you would have had almost 40 million dollars! The Bitcoin is known as the first established cryptocurrency in the world, but not everyone knows that in 1998 there were several attempts to create online currency. For example, B-Money and Bit Gold were actually formulated but not fully developed. Nick Szabo is a famous scientist and cryptographer who was investigating smart contracts and digital money in the 20th century. He designed special Bit Gold digital currency that further became “a direct precursor to the Bitcoin architecture”. In 2009 someone calling himself Satoshi Nakamoto presented Bitcoin software to the public. In few years, Bitcoin was valued for the first time, meaning that it could not only be mined but also traded. In 2010 there was a nice enlightening story when someone decided to use his bitcoins for the first time. He exchanged 10 000 Bitcoins for 2 pizzas having made the guy who gave him his pizza one lucky individual. Using current ratio, it would add up to more than $100 million. In 2013 Bitcoin reaches unbelievable numbers - 1000$ for 1 coin. Nowadays, this cryptocurrency remains the most popular and stable among thousands of competitors, continuing to grow in terms of price and popularity.

In the beginning, there was a pizza.

The first thing that was bought using Bitcoins was pizza. But where can we spend our cryptocurrency nowadays? Fortunately, the modern world develops with the course of time and tries to adapt to any innovations as soon as possible. So, today there are a lot more online and offline ways to spend your cryptocurrency. For example, some charity organizations accept Bitcoins, so you will be able to show mercy and invest your digital money wisely. Buying physical goods with Bitcoins is getting more popular as well, so there is an increased demand for online e-commerce sites. Сompanies like Microsoft and Green Man Gaming started to sell different apps and games for Bitcoins. Overstock.com offers all available products for sale in cryptocurrency. Concerning cafes and restaurants industry, more and more establishments worldwide are starting to accept Bitcoins and even some of them accept opting for cryptocurrency only. Traveling is also a great way to use your Bitcoins since you can book a hotel, rent a car, or even pay for your flight. The Expedia is a good example of a traveling website that accepts digital currency payments. Lots of people are also starting to purchase property with Bitcoins. Another interesting news is that Paypal announced its partnership with main Bitcoin payment companies such as GoCoin, BitPay, and Coinbase. Now, with the help of these three enterprises and their partnership, you can accept Bitcoins via PayPal Payments Hub. And that is just the top of the iceberg because more and more companies and businesses are beginning to accept digital currency every single day.

Q: How do Bitcoin transactions work?
A: Using a Bitcoin is extremely simple even for the least computer-savvy people. With hardware wallets, this process is much easier. In order to send bitcoins, you need to have access to the public and private keys first and foremost. The public key is actually an address of your wallet which is open for everybody who wants to send you a number of coins. While private keys are secure sensitive information which should be kept in secret. So, for a transaction, you need to use your private keys to send a message with the transaction details. Transaction confirmation usually takes some time because it should be verified on the blockchain by miners. And there is also one possible reason for a long confirmation time. There is one special rule that limits the number of transactions entering a block, so it slows down the whole process.

Q: How much is a Bitcoin transaction fee?
A: Transaction fee is a difference between the amount of Bitcoins spent and received. This fee is calculated using a variety of factors and differs depending on the amount of money you send. The transaction fee goes to the miners and can be used further to raise the transaction speed.

Q: What is a Cold storage?
A: All digital assets exist as data. So, any data that is stored online is much more vulnerable to some hackers or cyber-threats than the one that is stored in the offline environment. Cold storage in cryptocurrency space is a little bit different notion than in other spaces. This type of storage is great for long-term investments. As you probably understand, the most important thing to protect is your private key. So, in order to keep them in the most reliable space, there is a so-called cold storage (cold wallet). That means your sensitive information is stored in an offline environment protecting it from any possible theft. Such storage type is very popular among investors owing a great number of Bitcoins. Nowadays, the most popular cold storage options are paper wallets, hardware wallets, desktop wallets, and USB drivers. The best option is a hardware wallet as it is safe and secure, can’t be copied, and can be restored if the need arises.

Q: How to keep my recovery phrase safe?
A: The recovery phrase (seed) is needed in case you have lost or damaged your wallet and want to restore information, so that means it is extremely important to remember and keep it in secret. Many people just skip writing down this recovery seed, making a really big mistake. However, to prevent the loss of your investment, it is the first thing you ought to do. The best method to store your recovery phrase is not to do that in an online environment. Just write it down on a piece of paper and store it in a deposit box, for example. Or just write it and store at home but in a secure place; that is much better than keeping it online. Being smart and cautious concerning your wallet, password, and recovery seed can help you greatly reduce the chance of theft and keep your assets safe. So, don’t forget that you are the only person who is ultimately responsible for all Bitcoins you have.