How to redeem physical bitcoin

Just the way we keep cash or cards in a physical wallet, bitcoins are also stored in a wallet—a digital wallet . The digital wallet can be hardware-based or web-based. The wallet can also reside on a mobile device, on a computer desktop, or kept safe by printing the private keys and addresses used for access on paper.

Even though there are a handful of bitcoin ATMs in the world, bitcoin is not a physical currency . Spending takes place from one user’s virtual wallet to another user’s virtual wallet, via an exchange of public and private security keys.

Each coin has a unique Bitcoin address and a redeemable “private key” under a hologram on the coin. That key can be used to redeem the value of the Bitcoins online , but the hologram sticker leaves a honeycomb mark when peeled back, so you’ll know if your Bitcoins have been tampered with.