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Know about Bitcoin Wallets and its Types

Know about Bitcoin Wallets and its Types

A Bitcoin wallet is an account for processing the transactions of digital or crypto currencies. Payment cannot be sent or received without this wallet. So, before you can get bitcoins, you need to own a bitcoin wallet.

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There are 5 types of wallets, namely

  • Desktop – It is the most secure way to store your bitcoins and is needed to be downloaded to your PC or Mac. In order to keep your wallet live and functional, you need to install and update a wallet program.
  • Paper – In this type, your public and private key is printed on a paper and is an inexpensive way to store Bitcoin private keys. Since this wallet is under your physical custody, it is highly secured.
  • Online – Among all types, this wallet is extremely easy to use. You can access it when you have a computer with Internet connectivity. Based on the type, the wallets are sometimes hosted and non-hosted.
  • Hardware – They have an online and offline version and are called cold storage wallets since while processing transactions they generate keys only when needed. They are devices and are designed to hold the keys of users.
  • Mobile – These wallets are applications that are downloaded on your phone from popular app stores. They are the most used wallets since they are mobile-based and are easy to use.

There are various advantages of using each wallet, so finding the best bitcoin wallet is based on your needs and is totally up to you.

Ethereum VS Bitcoin

Ethereum VS Bitcoin

Ethereum uses blockchain technology, an open software platform for crypto trading. It’sjust like other crypto trading options; it aims at decentralizing the monetary system. However, it’s a lot different from Bitcoin, which was the first cryptocurrency launched in 2009. There is a lite version of Ethereum launched in 2016 which is known as Ethereum Classic. With the launch of Ethereum, the trading of Bitcoins has been significantly affected. Some crypto trading experts believe that they will replace Bitcoin in the near future. You can also visit this link https://freebitco.in.

Comparison of Ethereum with Bitcoin:

Ethereum Bitcoin
Ethereum uses Ghost Protocol, which allows the block time to be reduced to as low as 14-15 seconds. This allows for faster transactions in trading. The block time for Bitcoins transaction is up to 10 minutes, due to which the speed of transaction is very low.
The economic model of Ethereum blocks the reward amount of Ether for only a year. The economic model of Bitcoin blocks the reward halve for 4 years.
Ethereum uses different costing methods as per the storage capacity, bandwidth, computational complexity, etc. This is known as Gas in Ethereum and varies as per blocks. Bitcoin transactions’ costing is uniform as per the block size. They do not vary as per the storage capacity or other factors.
Ethereum has its own turing internal code. With this, it can calculate any complex transaction. There is no such flexibility and mechanism present in Bitcoins.
Ethereum was launched as a crowd-funded application. Bitcoin was launched by a few miners, and so, most Bitcoins that can be mined are owned by a few people, creating a monopoly.
Ethereum does not allow centralized pool mining, due to its ghost protocol. Centralized pool mining can be possible in Bitcoin trading.
Ethash is the memory hash algorithm used by Ethereum. This allows for decentralized mining. Bitcoin has no such hash algorithm.
Ethereum was developed in mid-2015. Bitcoinwas launched in 2009 and is the first cryptocurrency.
The market capital of Ethereum is around less than 1 billion. The market capital accumulated by Bitcoin mining is around more than 10 billion.
The popularity of Ethereum is very low in the market. The popularity of Bitcoin is very high among the people.
The hash rate of Ethereum is 3 TeraHash. The hash rate of Bitcoin is 1.8 Exahash.
The initial distribution of Ethereum is via ICO. Bitcoins were distributed by mining only.
Till date, 81 million Ethereum has been distributed. Till date, 21 million Bitcoins are available for mining.
This cryptocurrency is highly scalable. There is lack of scalability in Bitcoins.

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Although Ethereum is quite new compared to Bitcoins, ithas still reached the second position in the cryptocurrency world. However, the popularity of Bitcoins has dominated the market for the last 8 years.The system and algorithm of Ethereum are highly disruptive, and it’s sure to decentralize the finance sector. Also, Ethereum may soon reach the top position in the cryptocurrency world. However, it’s very difficult to make any predictions in this highly dynamic market.