In order to put money down at any of the best Bitcoin dice websites, you will need a place to hold your digital currency. Bitcoin wallets are where you stash away your digital coins just like your wallet in your pocket.
There are many different types of Bitcoin wallets that you can use. To know which wallet to pick, it is a good idea to get a good grasp on how blockchain wallets work.
Bitcoin wallets basic
Despite the name, Bitcoin wallets are not like the kind of wallet that holds your winnings from various Bitcoin dice sites. Instead, it is more like a bank ledger that everyone around the world can see. There are no actual coins that you exchange with another person. Instead, there is just the amount that you own recorded on the public ledger.
What makes a wallet unique are its private key or seed. This is your proof that you own the wallet and the Bitcoin it contains. When you spend or receive Bitcoin from any bitcoin dice game website, you exchange private keys with the person you are transacting with. The keys sign the transactions between two wallets. This ensures that you receive or pay the right amount. It also prevents anyone from easily changing the amount of Bitcoin you have on your wallet.
Types of Bitcoin Wallets
People who are new to the digital currency are likely to have their first wallets in an online exchange such as Coinbase. There are even Bitcoin dice faucet sites that will hold your money. The disadvantage of most of these wallets is how you are not in control of the private key to your wallet. To compensate, online wallets provide more layers of security to its service. These security measures include multi-signatures and two-factor authentication.
For many people, secured Bitcoin wallets are ones where you have control of your private key and are not always connected to the net. There are three different types of these wallets.
- Hardware Bitcoin Wallet – These wallets are the size of a small phone or flash drive. Hardware wallets have smartcards or a small CPU that lets you create your private keys without connecting to the net or a computer.
- Software Bitcoin Wallet – Software wallets can be installed on a computer that is not connected to the net to add the same amount of security as hardware wallets. There is some wallet that adds more security by using multiple signatures.
- Mobile Bitcoin wallet – These are almost the same as desktop wallets which offer more functionality than hardware wallets. Mobile wallets are practically portable desktop wallets.