The Best Bitcoin Wallet in Australia 2020

January 1st, 2018

When trading in cryptocurrencies it is essential to have an understanding of how you store your coins. Unlike most traditional currencies that we are all familiar with using, bitcoin is a digital currency. Bitcoins don’t exist in any physical shape or form - you can’t hold them in your hand - you can’t stuff them under the mattress or put them in a traditional wallet.

So, they can’t really be stored anywhere in the real world. They are a digital currency. They are accessible through Bitcoin addresses, which require a set of digital keys for entry. So, the question of how to securely store bitcoin comes down to the security of these keys. In order to conduct bitcoin transactions digital keys are used to verify the ability of the buyer and seller to have access to the funds. It is vital these keys are protected in a secure storage system.

Bitcoin Wallets

Bitcoin wallets keep safe these private keys, which are used to sign transactions and provide mathematical proof that they have come from the owner of the wallet. This key signature also prevents the transaction from being altered by anybody once it has been issued. A combination of the recipient’s public key and the seller’s private key is what makes a Bitcoin transaction possible. These keys are stored in your bitcoin wallet.

It is worth noting that people who don’t want to control their private keys and wallets can find others who are willing to host bitcoin wallets. The most popular of these are cryptocurrency exchanges. By design, most exchanges have the best bitcoin wallets built in to allow for deposits and withdrawals of different assets. By depositing bitcoin into an exchange’s best bitcoin wallet, a user is essentially handing over the control of their bitcoins to the exchange as well.

It is always desirable to have access to competent and readily available support to help with queries and troubleshooting, particularly if you’re new to bitcoin trading. Australian based bitcoin exchanges are the most appropriate for supplying the best bitcoin wallet Australia if you are living in Australia.

The best bitcoin wallets Australia are available in a variety of types and suit different situations in differing ways. The best bitcoin wallets Australia can be roughly divided into two different varieties - hard wallets and soft wallets.

Hard Wallets

Hard wallets are essentially wallets that provide a way free of the internet to store the valuable keys and records of transactions. Think paper records, usb storage, things that take the form of a physical device that protects a user’s keys by encrypting all the information and then removing it from the internet. The best bitcoin wallet Australia in this ‘hard’ form is considered the most secure and should be used to store the keys and information related to the bulk and large numbers of bitcoins.

Software Wallets

Any wallet that does not come in a physical format can be considered a software wallet. Given the nature of software, though, these types of wallets can exist on any computer, as well as on mobile phones. Some software wallets, called “web” wallets, exist as applications accessible by web browser.

It is important to note that software wallets, regardless of the device they are on, are not as secure as hardware wallets given their digital nature and are open to the ability of hackers. However, the best bitcoin wallet Australia supplied by bitcoin exchanges are valuable and provide a secure service - they require your trust in the security methods employed by the bitcoin exchange provider. The best soft bitcoin wallet Australia is a great way to store small amounts of bitcoins for easy and frequent transactions.