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For a new bitcoin investor, you must know how to open a bitcoin wallet and also understand how wallets work. The key storage unit for bitcoin and altcoins, wallets, is where digital currencies are spent, received and maintained. The Bitcoin wallet is a database maintained online or offline that stores the private key for the currencies it owns. When you make a transaction, you sign the transaction with your private key, which gives you ownership of the coins and your right to initiate the transaction. The blockchain encodes the bitcoin transmitted with the recipient's private key, formally transferring ownership.
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