The downside to a software wallet is that they are less secure than their hardware counterparts since they are always online. They are also less costly than hardware wallets in most circumstances. The latter is ideal for storing small amounts of bitcoin, as it lives online and is convenient to use. When trading bitcoin, one of the first decisions you’ll need to make is using a hardware or software bitcoin wallet. The owner of a bitcoin wallet gains access to their wallet by using a private key. A bitcoin wallet is a type of software that lets you store your cryptocurrency online, or in the case of a hardware wallet, offline in a physical storage unit. Nor can you store it in a traditional bank account. Because bitcoin is a virtual currency, you cannot hold it in your hand.
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