After getting bitcoins, the next step should be proper storage. People in the Bitcoin community refer to where they store bitcoins as wallets. A Bitcoin wallet functions similar to a bank account. People have many options for their wallets. A software wallet means people have more control over their bitcoins. It can also be intimidating for beginners, and tricky to maintain.
Generally, the kind of Bitcoin wallet for casino players to use depends on how technical they want to be. Here is a guide featuring the function of different Bitcoin wallets for the benefits of players in a Bitcoin casino.
Third parties manage web wallets like Blockchain.info and Coinbase. They hold the private and public keys of their users. Web wallets make it easier for people to access their bitcoins. At the same time, this kind of wallet is simple to use because a Bitcoin user does not need to learn more about wallet software.
Web wallets can group transactions together before taking them to the blockchain. This lowers transaction fees, making this the better option for many players.
Moreover, web wallets offer more convenience, especially for players who prefer to send their bets straight from their account just like how SatoshiDice initially functioned when it was launched.
There are people who invest in a hardware Bitcoin wallet. This kind of wallet offers more security because the funds are stored offline. Hardware wallets have two parts. One disconnected device, and one connected device. When the wallet is connected, it holds public keys.
When connected, the signed transaction can now go into the wallet and Bitcoin network. The device can also use a QR code. This way, the transaction uses online software to assemble and generate a QR code. The offline device, on the other hand, scans the QR code and returns a signed QR code. The signed QR code goes back into the online software and into the Bitcoin network.
Some of the popular hardware wallets today are those from Trezor and Ledger.
Another form of offline storage is the Bitcoin paper wallet. A piece of paper holds the Bitcoin private key. These can be kept in vaults, safe from online theft. Losing paper wallets, however, is risky. Whoever holds a paper wallet has access to both Bitcoin address and private key.
When using paper wallets in transactions, people can just have over the wallet. The risk there is trusting that the paper wallet owner does not have multiple copies of the wallet and will spend the contents before they get it.
In paper wallets, the private key will create both public key and address. This is why paper wallets need to stay safe. When it comes to betting on Bitcoin games, using a paper wallet is not advisable due to the inconvenience it brings. Regardless, paper wallets are perfect for storing bitcoins away from potential cyber risks.