Moreover, when these transactions are recorded in the form of blocks which are then added to the blockchain technology, the identity of the users tend to remain anonymous.
Although the bitcoin users enjoy control over their transactions and are not answerable to anyone, while remaining anonymous at the same time, they however have to face many issues relating to the safety of the technology.
Therefore bitcoin users are encouraged to remain alert about their transactions and the bitcoins they own.
Digital wallets can be internet based in which the bitcoins are saved in online wallets which can then be accessed by downloading the respective apps on the user’s phone or personal computer.
A private key is a form of cryptography that is used to encrypt or decrypt codes and thus enable bitcoin users to get access to their wallet.
With the easy access of such devices and the speed at which the internet allows transactions to be made most users find hot wallets to be very convenient in use.
Since these wallets are not highly secured, therefore it is more reasonable to use this wallet for small quantities of bitcoins.
These wallets function by securing the address of the user and the private key of their account in a way that is not connected to the internet.