A Beginner's Guide That Will Help You Familiarize With The Bitcoin Terminology
Bitcoin is a cryptocurrency that can transact without any administrator or intermediary such that you can send it from one user to the other without a single administrator. Bitcoins are a type of money transfer but in bitcoin form that is used as a means of exchange. It is slightly different from the money that is in the bank since bitcoins are not secure compared to the money in the bank. The difference between the money in the bank and bitcoins is that the funds in your bank account or any institution that deals with your funds is that they will have some protection to your funds such that if your accounts are exposed to hackers then you can have a company that will be willing and ready to bail you if anything that like happens.
If you are using bitcoins then it means that you are taking control of all the funds and all the risks that are involved with the bitcoins. To explain this is that in any case that you lose your money then you will have no one that you can claim from. This makes hackers tend to look for the bitcoins since they get to keep the bitcoins. Among all the types of wallets that are available the bitcoin is the most prone of all those wallets since its available in the internet and hackers can reach the wallet easily and therefore its recommended that if you want to have the security of your money you must stay away from the bitcoin wallets.
To store the bitcoin private keys you will have to have a digital wallet that will keep them safe. The difference in the bitcoin wallets is that they have different security profiles, different risks and trade-offs. With the bitcoin appearing as blockchain, the bitcoins cannot be store in the wallet. The private keys are the ones that are used while you are using the bitcoins and the wallet store the private keys. You can use any of the bitcoin wallets and this is because there is no any that can be recommended as the best of them.
Hot and cold wallets are large classification of the wallets. Hot wallets are those wallets that are connected on the internet and they include web, desktop, and mobile wallets. The other are also called the cold or hardware wallets since they keep the keys offline and in cold storage, which makes them secure, more than the hot wallets which are exposed to the internet. To summarize, that is the best description of bitcoin private keys.