Why do you need a Bitcoin Wallet?
First, understand that Bitcoin is a digital cryptocurrency. It can not be physically held but it is electronically mined, stored and traded.
So, just as you have a physical wallet that holds your money, that’s what a Bitcoin wallet is. More so, it can easily fit into your phone or a small device and you can carry it across the nations of the world.
Bitcoin is not really anonymous. All Bitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin address. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances.
Here are the reasons why you need a Bitcoin wallet:
- To keep your Bitcoin stash.
- To transact in Bitcoin (to receive or send Bitcoin for any product or service).
- You can not deal in Bitcoin without a wallet.
You need to treat Bitcoin with the same care as your regular wallet, or even more in some cases!
One good thing when dealing with Bitcoin is that it can detect typographical errors and usually won’t let you send money to an invalid address by mistake.
Are you just starting out to know more about Bitcoin? Which Bitcoin software wallet should you use as a Nigerian? We talked about it in detail here.