Fundamentals to be Kept in Mind While Choosing a Bitcoin Wallet
Bitcoin is a cryptocurrency that uses peer to peer technology. But to transact in bitcoin, you first need to purchase bitcoin from an authorised bitcoin wallet or bitcoin exchange. After having purchased bitcoin, you will have sufficient balance stored in your digital wallet. Thus, bitcoin exchanges enable you to buy or sell bitcoin. They monitor all your transactions and guarantee you complete transparency.
Bitcoin is an advancement in technology and not many people are aware about its functioning. Therefore, it is very important to choose the right medium for transacting in bitcoin. Many websites deal in bitcoin but are at their initial stage of development. So it is very important for the user to be aware about all the fundamentals that must be kept in mind while choosing a bitcoin wallet. Let’s have a look at some points on similar lines:
Simple, safe and secure:
Since bitcoin holds significant value in terms of purchases, the user must use his bitcoin carefully. Bitcoin can be used for making all sorts of payments. They allow the user to make both national and international payments. Thus, there is no restriction in terms of geographical transfers.
Though bitcoin in itself is the most simple, secure and safe mode of payment, but considering the purchase of bitcoin, the user must choose a secure wallet that ensures complete transparency to the user. Most bitcoin wallet apps have an inbuilt ledger which the user can monitor. Thus, the user must choose a safe and secure wallet.
Transaction fee and charges:
Since bitcoin trading is done online, the transaction fee is almost minimal. There are no deductions on the basis of national and international payments. This is why bitcoin is considered to be a global currency as well. Thus, the user must be aware of the terms and conditions of the different bitcoin wallets. Since there is no regulation on bitcoin, all bitcoin wallets operate on individual terms.
Bitcoin can be used as a replacement to the traditional medium of exchange i.e money. But there are only some specific companies that accept bitcoin as a mode of payment. Though bitcoin can be used for making all sorts of payments and transfers, the user must be aware of the bitcoin exchanges that are authorised. Most of the bitcoin wallets enable the user to make payments easily, but the user must be familiarised with the accessibility of the app.
Most of the users of bitcoin expect windfall gains from the rise in prices of bitcoin. Therefore, they liquidate once they find the prices good enough to benefit them a healthy profit. But certain bitcoin wallets allow you to liquidate only after a certain period of time or after completing a minimum transaction limit. Here also the terms and conditions vary because of lack of regulation. Thus, the user must familiarise himself with the terms and condition of the bitcoin wallet.
All the above points must be kept in mind before choosing a bitcoin wallet.