WEBVTT

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A Bitcoin wallet is
a digital wallet used

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to send and receive Bitcoins.

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Instead of storing
physical currency,

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a Bitcoin wallet gives
users cryptographic control

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of a blockchain address.

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Each wallet contains a
set of secret numbers

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or private keys that correspond
to the user's blockchain

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address book.

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These keys are used to
sign Bitcoin transactions.

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And that's important
because if an attacker can

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steal a wallet's private keys,
they can move the Bitcoins.

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There are different
types of Bitcoin wallets.

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Some Bitcoin wallets allow
other cryptocurrencies as well.

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Desktop wallets are
installed on a computer.

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Some offer more functionality,
like integration

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with an exchange.

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But desktop wallets are
considered less secure

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because a computer can
be easily compromised.

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Mobile wallets work
like desktop wallets

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but are on mobile devices.

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These wallets can process
payments in physical stores

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through near field
communication, called NFC,

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or through scanning a QR code.

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Be careful though.

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There have been cases of malware
disguised as Bitcoin wallets.

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A web wallet is an online
cryptocurrency service.

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They can be accessed from
anywhere as quickly as checking

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your email.

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However, security is a
concern, and there is

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a definite counterparty risk.

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Hardware wallets store
keys on a physical device

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without internet access.

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They look like USB drives.

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When the user wishes
to make a transaction,

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they plug in the hardware wallet
which then signs transactions

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securely.

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Hardware wallets are practically
immune to virus attacks,

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and thefts have been rare.

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