Bitcoin is a digital currency that works with lower transaction fee. It is operated by decentralized authority not by banks. There are no physical coins available in store. They deal only with virtual money. It follows a traditional way of online payment mechanism. All the transactions and balances are done on a public ledger. The data’s in the book are verified by computer power. They do not work under bank or managed by government. They rely only on a shared public ledger called block chains. It helps in calculating the spendable balance and transferred money.
What is a bitcoin wallet?
The user should create an account for proceeding with transactions. Each account of bit coin contains address generated by public key and it is termed as bitcoin wallet. Once the transaction is done, the money transfer is verified using the address of best bitcoin wallet. It has secret piece of data called private key or seed. They are used to sign transaction by providing mathematical proof that they have come from the owner. The transactions are broadcasted to network and confirmed in 10-20 minutes through mining.
Advantages of Bitcoin wallet
- Bitcoin purchases are discrete. Unless a user voluntarily publishes their transaction, their purchases are never carried out
- The biggest benefit of using digital currency is that, there is no third party involved in your transactions. It has degree of freedom to access and transfer
- Transaction through wallet costs low transaction fee. They are no taxes involved in wallet transaction
- Mobile payments are possible as like other banks. Unlike US based accounts, you need not share any of your personal information and it is not required to complete any transaction also