Wallet and Address
A Bitcoin wallet is software or hardware that manages private keys to access digital assets, while an address is a public identifier for receiving Bitcoin payments.
What is Wallet and Address?
A Bitcoin wallet is a software application or hardware device that stores and manages private keys, public keys, and Bitcoin addresses to enable users to send, receive, and track digital assets on the Bitcoin blockchain. Private keys, typically 256-bit random numbers, cryptographically secure access to Bitcoin funds, while public keys (derived via ECDSA) generate addresses. Together, wallets and addresses enable secure, pseudonymous Bitcoin transactions.
Bitcoin Wallets come in types: software wallets (e.g., Electrum, BlueWallet) run on devices like phones or computers, requiring 5-50 MB for lightweight clients or 600+ GB for full nodes like Bitcoin Core; hardware wallets (e.g., Ledger Nano X, Trezor Model T) store keys offline for enhanced security, costing $70-$150 as of 2025; and paper wallets, printed key pairs, now largely obsolete due to risks of loss or theft. Wallets do not store Bitcoin itself but enable signing transactions, with 90% of users opting for custodial wallets (e.g., Coinbase) versus non-custodial ones for self-sovereignty.
Related Terms
Circuit Breaker
A mechanism to pause trading in a prediction market to prevent rapid price distortions from herd behavior or manipulation.
Validator of PoS
Network participants staking tokens to propose and attest blocks in proof-of-stake consensus.
Price (order book)
The specific value at which buyers or sellers aim to trade a digital asset in the order book.
Option Value (MSTR)
The premium paid for an option contract, reflecting intrinsic and time value.
Peer Prediction
A mechanism that incentivizes truthful reporting by rewarding participants based on how well their predictions align with others’ beliefs.
Layer 1 (L1)
The foundational blockchain protocol handling consensus, security, and transaction execution, like Bitcoin or Ethereum.