Difference Between Bitcoin Wallet and Bitcoin Exchange Website

As many people know that bitcoin is a first developed digital currency in the crypto industry. At the starting stage of the first digital money, the price is very low. Many people refused to buy bitcoins at the initial stage because they didn’t believe that it would be the future of the digital world.

Currently, the price of bitcoin is more than $9800. So if you owned many bitcoins at the starting period now you will be a millionaire. Now bitcoin has the highest price in the marketplace. So many investors and startups invested their money in bitcoin and made huge profits.

Moving to the next level, startups and entrepreneurs started their own bitcoin exchange business by using the first-quality bitcoin exchange software. Also, the bitcoin wallet is more important in the bitcoin exchange platform. In this blog, let us discuss what is bitcoin exchange website and bitcoin wallet. So you can understand the difference between them.

What is the bitcoin exchange website?

Bitcoin exchange website is an online trading website platform. Where a user can buy, sell, and exchange bitcoins and other popular cryptocurrencies available in the marketplace. It helps to convert your traditional currencies into cryptocurrencies. Such as ethereum, dash, ripple, litecoin, and other virtual coins. If there is no bitcoin exchange platform, then you need to get the bitcoins from the other persons. But it is not secure and may be some fraudulent activities will happen.

Bitcoin exchange website simplifies your process of buying the bitcoins through a bank account. but some exchange accepts credit/debit card payments. So you can directly buy bitcoins and other crypto coins through credit/debit cards. On the bitcoin exchange website, You can buy all the virtual crypto coins according to the market rate. In the crypto industry, there are many popular exchange websites with more active crypto users. Some prominent bitcoin exchange websites in the cryptocurrency industries are binance, coinbase, and LocalBitcoins. But binance is the world’s largest bitcoin exchange platform with high trading volume. There are some types of bitcoin exchanges in the crypto market place. They are

• Centralized exchange
• Decentralized exchange
• Ads based exchange
• Orders book exchange
• Binary options exchange

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What is a bitcoin wallet?

A bitcoin wallet is a small software that is enabled on the bitcoin exchange website. It is mostly used to store, receive, and transfer bitcoins and other cryptocurrencies. It also monitors your crypto balance and your transactions. Without a bitcoin wallet, you can not store the received crypto coins. Also, you can not transfer any coins to other users. So it plays a major role in bitcoin exchange websites.

Bitcoin wallet has one or two private keys to access the crypto transactions. It allows you to perform secure transactions. Private keys are very important and it should be maintained in a secure manner. Bitcoin wallet has both the private keys and public keys for the bitcoin transaction. Here public key acts as an address that is directly connected to the wallet balance.

In the bitcoin wallet, there are two major types of storage wallets such as a hot and cold wallet. The hot wallet is said to be online wallets and you can access only through the internet. But the crypto experts say that hot wallets are not secure. Because many scams and hacking are happening in the hot wallets. But some business people and investors use hot wallets for faster bitcoin transactions. Whereas cold wallets are offline wallet storage and there is no need for the internet to access the wallet. You can monitor your crypto balance without the internet. So most of the startups and entrepreneurs prefer cold wallets for secure crypto transactions. Also, many crypto-traders use cold wallets for storing bitcoins.

There are five different types of bitcoin wallets in the crypto marketplace. Such as

• Mobile wallet
• Desktop wallet
• Hardware wallet
• Paper wallet
• Web wallet

You can avoid the cryptocurrency and token thefts by using the cold wallets. Because it is safe and secure. Also, you can activate the two-factor band biometric authentication as additional security in your bitcoin wallet.

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Final thoughts:

As for now, starting a bitcoin exchange business is a magnificent idea for making more money. So if you are interested to start a bitcoin trading business then you can use the first-rate bug-free bitcoin exchange software. So that you can launch your own crypto trading platform within a few days in a hassle-free manner.