Bitcoin Wallet: You need to know this

A wallet is a piece of software or hardware that manages all Bitcoin addresses and the associated private keys. With a Bitcoin Wallet, Bitcoins can be held, received and transferred.

A Bitcoin Wallet is thus a kind of bridge, an interface that manages its own public keys and private keys.

What is a Bitcoin code?

A Bitcoin code is a public address, also called a receiving address, to which bit coins are sent. This receiving address can be used to receive the Bitcoin code. For this purpose, the public address is passed on to a stock exchange or to a third party.

A Bitcoin receiving address usually starts with a 1, 3 or bc1q and looks like this:

The receiving address is a kind of account number for your own Bitcoin account. And each public address has its own private key.

What is a Private Key according to

The Private Key is a secret access code for the associated receiving address: The private key is therefore a kind of PIN for the Bitcoin account. And this private key should always remain private!

If you have a private key, you always have the Bitcoins on the corresponding recipient addresses.

A private key then looks like this:

This private key is the access code for the upper Bitcoin receiving address. If Bitcoins were stored on the receiving address, anyone could steal the Bitcoins with this private key.

Of course, storing each private key individually would be a lot of work if hundreds of receiving addresses were used. For this reason, there are more convenient solutions. Wallets, for example, offer backups that can store several private keys at once. Another possibility is a so-called seed, which is used for HD Wallets.

Bitcoins never store on a PC
Once the basics of private and public keys have been understood, another incorrect assumption must be corrected. Bitcoins do not „store“ on the PC or smartphone. If the PC is destroyed, for example, you could still access the Bitcoins if you have the private keys.

Remember: You will only have your Bitcoins if you have the private keys and keep them safe.