Bitcoin wallet - what is it?

When trading Bitcoin, there is always talk of a so-called wallet. In this practical tip, we explain exactly what that is and why you need it.

What is a bitcoin wallet?

The wallet is an important tool in dealing with Bitcoin.

The Bitcoin Wallet can be compared to a real wallet. You buy one or more purses to store your money in. If you want to spend money, for example when buying a product, take the money from your wallet and pass it on.
This is the basic principle of the Bitcoin Wallet. Bitcoin is a digital currency. There is no physical object that represents the value "real" as with banknotes. Therefore, a "digital" wallet is used.

Each wallet is a kind of long string. This is only available once and describes your wallet and no other. Your credit is saved in this wallet.

If someone knows your wallet, they can also see how much credit you have on it. So that only you have access to your wallet, it is protected with a password.
Every wallet is anonymous. No personal data is saved. You can also purchase additional wallets.
It is advisable not to store all of your assets in a wallet. Create additional wallets with little credit, for example for mobile use on a smartphone.
You can also copy and save a wallet like a file. Wallets with a lot of credit can be saved offline and backed up at different locations.

Creating and using a Bitcoin wallet is relatively simple.

First you have to decide whether you want to use the wallet on your smartphone or tablet or on your desktop. There are also pure online wallets or so-called hardware wallets. These are a kind of USB stick on which the wallet is saved.
There is a large selection of different wallets for the respective systems on the German Bitcoin side.
Pick out one of these wallets and install it. After installation, you can add bitcoins to your wallet.

In another practical tip, we will show you the difference between Bitcoin and Litecoin.