January 6th, 2018
Bitcoin seems to be this year’s buzzword. You can’t go on social media or even Netflix without seeing something about Bitcoin. So what is this popular new currency? Bitcoin is a decentralized digital currency that was introduced by Satoshi Nakamoto as an open source software. This innovative technology utilizes peer to peer evaluation by using technology as currency from one user to another, without involving a third party or central bank. All of these transactions are then recorded on a public ledger or Blockchain. Digital wallets are used by Bitcoin users to send, store, and receive bitcoins. Bitcoin wallets are essential software that can be used to store and send digital currencies electronically. Bitcoin users can use their smartphone, tablet, PC or web app to easily send and receive Bitcoin.
Before you start using your Bitcoin wallet, it is important to learn more about Bitcoin private keys. The private key is similar to a debit card pin number. This secret number is generated to allow Bitcoin users to spend digital currency. When you are first issued your Bitcoin “address” (basically your account) you will also be issued a private key or “pin”. The Bitcoin private key is a 256-bit number that allows individuals to spend or send their digital currencies easily and safely. Just like you wouldn’t want to share your pin number with a stranger the same can be said for your Bitcoin wallet private key.
In order to make a digital currency transaction, the user must have availability to a program or tool that allows them to import private keys. Very few wallets are able to make these transactions without importing private keys. However, some Bitcoin wallets will require private key to be swept. The private key passes through the procedure of a sweeping transaction will then be broadcast to another address, including the balance.
As stated above, being able to and know how to import a private key is essential for most digital currency transactions. There are several tools currently available that help you to extract Bitcoin private key. You can find out more information here, when you get started using Bitcoin.
Keeping your private key safe is important to ensuring that only you have access to your personal bitcoins.
One of the best way that Bitcoin users can keep their private key safe is by storing the private number on computers that are encrypted.
Bitcoin private keys are relatively short and can also be kept in a password ledger or other physical file for added privacy.
Record a backup phrase on a piece of paper. File this paper somewhere safe and secure.
There are also tools available online that can help you extract private keys from wallet files. These extracted files can also be printed onto paper as needed.
Using an APP Pin can be helpful. Digital currency users can set strong PIN locks on their Smartphone.
Start using Bitcoins today, when you register online at Bitcoin of America.