How To Use Bitcoin Digital Wallet Software

For those who are still unfamiliar with the concept of Bitcoin, the concept behind having a digital currency wallet might be equally confusing. This article will help explain what a Bitcoin is, why it has become so popular so fast, and how to get the most out of using your Bitcoin digital wallet. Bitcoin itself is something called a “cryptocurrency,” which means that it is 100% digital and is protected and maintained by a very advanced set of military grade public key algorithms that require solving complex mathematical equations.

A Currency Powered By An Algorithm

The computer network that solves these equations is peer-to-peer in nature, meaning that it is a collection of interconnected computers from all over the world. There is a very large file that some digital wallets will require you to download called the block chain, which is the sum total of every Bitcoin transaction that has ever occurred. One of the implications of the block chain as part of the Bitcoin algorithm is that every single transaction is recorded permanently as a matter of public record, meaning that Bitcoin is not actually anonymous and can be used to identify the people behind certain transactions.

Purchasing And Paying In Bitcoins

If you want to own or purchase bitcoins then the first step that you need to take is download the free digital wallet software to either your computer or your smart phone. Many people choose to make use of the smart phone version of the digital wallet because it allows them to carry their bitcoins with them as well as make purchases in person by paying with bitcoins. The way that you can pay using bitcoins in person instead of just on the internet is that the merchant can use their smart phone to generate an invoice that has a QR code, which is a square shaped black and white box that you can capture with your smart phone to complete the transaction.

Protect And Secure Your Digital Wallet

Because the new Bitcoin cryptocurrency is completely digital, it is important to be extremely cautious when it comes to protecting your digital wallet to make sure that your money is not compromised in any way. It is very important to keep your private password safe so that you never forget it and so nobody else has access to it, and it is also a bad idea to ever post your Bitcoin address on the internet. By learning more about Bitcoin and how to use the digital wallet software you can decide whether you want to convert some of your money into Bitcoins in order to take advantage of the new decentralized cryptocurrency.

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