Bitcoin wallets are currently the most secure place where you can send and receive bitcoins and other altcoins. The cryptocurrency safe storage space is called a wallet because the notion is analogous to an actual wallet where you can keep banknotes and credit cards. Furthermore, there are articles available online that discuss the step-by-step guide to obtaining the best bitcoin wallet.
Earlier bitcoin wallets only incurred basic features like sending and receiving bitcoins. Still, today some wallets give you more control over your private keys and the option of using multiple wallets at a time.
The most advanced bitcoin wallet feature is the Multi-Signature transaction, which is currently under development by BitGo and open sources on GitHub. The idea behind multi-signature transactions (MST) has increased safety for bitcoin users. Let’s discuss other advanced features of a bitcoin wallet.
Buying and Selling Cryptocurrencies:
Most wallets allow you to buy and sell Bitcoins; some also provide a feature to exchange them for other cryptocurrencies if your wallet also acts as an exchange. The feature is enabled by many exchanges like Coinbase, CEX.IO, and BlockChain wallet.
Also, some exchanges let you link your bank account to buy cryptos using fiat money, and other services let you pay in cash via smartphones in certain countries. For example, Exodus (Desktop Wallet), Jaxx (Mobile Wallet), and Coinomi (Mobile Wallet) offer this option, among others.
Customizable Transaction Fees:
The feature allows an investor or trader to perform the transaction at their convenient transaction fees and gas fees. In addition, the user can choose the transaction fee of their own. It is a beneficial feature, especially if the price of a cryptocurrency you send is on an upward trend and you are in a hurry to send it before it surges more.
Some wallets, mainly Exodus, allow users to enter a percentage of the transaction as gas fees, and such wallets also offer you dynamic fees. The dynamic fees show how much your cryptocurrency transaction fee costs in BTC/ETH/altcoin.
Some wallets also provide messaging inside which users can communicate with each other or any third party via encrypted messages. It’s a nice feature to communicate privately with your peers or other people or for communication between anyone and some business or merchants.
Import Paper Wallet:
An individual can scan a paper wallet and import the explicit private key based on your wallet file. Unfortunately, the private key secures the paper wallet on a non-permanent computer, and it is impossible to find its private key on the internet. So if you want to trade the bitcoins, you will have to find a new private key. It’s a secure way of saving your coins, but you will also require any advanced features available in the wallet.
It allows you to secure your bitcoin keys with passwords or passphrases instead of using words and phrases like “I’m Satoshi Nakamoto.” The feature is phenomenal, and no one expected such technology to arrive in the bitcoin wallet one day.
The wallet exchanges coins on the decentralized network of the blockchain in place of a central server. This feature is not available to all wallets, and its most famous application is Shapeshift, launched in 2014 by Erik Voorhees.
Decentralized Recovery (Master Seed/Private Key/Wallet Seed):
Some wallets offer you seeds or a random set of numbers and letters so that you can restore your wallet if it gets lost or damaged due to malware attacks, hard drive failure, or other reasons. The seed features a secret key that can be used for backup recovery and is generally 12, 18, or 24 words long, depending on your wallet provider.
The feature was enabled for the first time in August 2016 and made it possible for two or more users to sign and verify a transaction. This feature mainly sends funds to companies with minimum approval requirements. In addition, the developers of the Tezos blockchain have introduced a better functional version of MST called Staking. Staking works through wallets like Exodus, Jaxx, and Coinomi, but all other wallets are still under development.
Did you know? The first bitcoin wallet was created in 2009 as a more straightforward email client called Satoshi Nakamoto Bitcoin. Later it evolved into a web interface and then into a desktop application.
The wallet can be installed on the primary operating system and accessed on the user’s device via browser or integrated electronic devices like smartphones, tablets, and PCs. To send money, go to the File menu in your bitcoin wallet app or website and select “Send” to get a transparent copy of your keys.