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Why do I need my own Bitcoin wallet?

You will need a Bitcoin wallet to safely and securely store your Bitcoin and give you access to the Bitcoin payments network. Whether you decide to store your Bitcoin with an online service or choose to control your own keys on your device, either option should provide you with the basic functions for receiving, storing, and sending Bitcoins to other wallet addresses.

Think of your Bitcoin wallet as both a keyring and address book in one. As a keyring, it keeps track of all of the keys that “unlock” your Bitcoin, allowing you to spend them. As an address book, the wallet provides you with the addresses linked to your keys, which you can share with other individuals to receive Bitcoin.

When you send Bitcoin, your wallet uses your unique keys to digitally sign and broadcast your transaction to the Bitcoin network, so that all other wallets take note of this transaction. Your wallet can tell you when your transaction has been confirmed by a Bitcoin miner, and provide additional information such as a transaction ID that you can give to others to prove that a payment has been made. Your wallet will also show any incoming payments that your wallet has received.

Related Questions

What is a Bitcoin wallet?

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How do I send/receive Bitcoin to/from my wallet?