If you want to use bitcoin, you first have to identify the best bitcoin wallet for your needs. A wallet is essentially a software app that allows you to send, received, and store your bitcoins. Three different types exist:
- Web wallets, which are stored online, on the cloud.
- Mobile wallets, which you install on an Android phone (iOS doesn’t have apps yet), and they allow you to use a QR code to perform your transactions.
- Software wallets, which you install on your desktop computer and allows you to completely control your transactions.
It is incredibly easy to make and receive payments with bitcoins. You can make it from any of the three wallets by entering the address, which is a unique key, of the receiver, entering the amount and simply pressing “send”. If you use a mobile wallet, you can simply scan the QR code of the recipient. In fact, if both your and their phone has NFC (near field communication) technology, then you can even do it by holding the two phones close together. Similarly, receiving a payment is equally easy. You just need to make sure that the person sending you bitcoins has your address or QR code. So what are the pros and cons of this type of system?
Pros of the Best Bitcoin Wallet
There are some key advantages to having a bitcoin wallet and using bitcoins:
- You can send and receive any amount of money in an instant, sometimes even within seconds. It doesn’t matter what time of day it is, or where in the world you are.
- You don’t have to pay any fees to process your payment. You can choose to pay, which makes your transaction even faster.
- You cannot reverse a transaction, which means you don’t have to worry about the fraudulent chargebacks that are so often seen with credit cards.
- Your personal information is never shared, which means you are really protected against identity theft.
- There is a predictable, transparent, and neutral process for both sending and receiving bitcoins.
Cons of the Best Bitcoin Wallet
There are a few disadvantages associated with bitcoins as well, and you must be aware of those. They are:
- You can’t use bitcoin everywhere – yet.
- Bitcoins are very volatile in terms of their value, because so few of them exist.
Should You Use Bitcoins?
The big question is whether or not you should bitcoins. The reality is that they are only beneficial in a relatively small network at present. However, that network is growing very rapidly. In fact, even Subway now accepts them as a form of payment! Furthermore, there is an expectation that, while their value is volatile, it will increase over time. Plus, because it is a decentralized form of currency, it will also protect you against inflation and deflation. Hence, they actually make a very good investment in the 21st century.