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What is a cryptocurrency wallet?

by John
What is a cryptocurrency wallet

A cryptocurrency wallet refers to a software program that helps individuals to store their cryptocurrency. It is a physical device that helps with transactions. You can send and receive the cryptocurrency smoothly. The cryptocurrency is divided into two pairs, one of them is known as private keys while the other one is the public keys. You can derive the public key from the private key that will help you send the crypto into the wallet directly. The crypto wallet is popularly known as the digital wallet and if you are planning to have some cryptocurrency this wallet will play an important role in keeping it safe. But first, find out what is the point of cryptocurrencies?

What is a wallet?

What is a wallet

A crypto wallet is essential if you are making use of cryptocurrency. It is an app that allows user to store their cryptocurrency and digital assets. When it comes to the conventional currency you don’t need to use this wallet. It keeps the cryptocurrency stored safely in one place. Whenever you want to make some transactions it will allow smooth exchange and receiving of money.

If the user has some cryptocurrency like bitcoins he/she can store it safely into the wallet. The crypto wallet has private and public keys while you can set a password after storing your currency in it. You can use this cryptocurrency like bitcoin and Ethereum to shop online.

The public key is like a bank account number and you can share it with people to receive money. A private Key is your password or PIN that you need to keep private at all costs. The crypto wallet keeps the information of both private and public keys.

Why are cryptocurrency wallets important?

Cryptocurrency is not like a normal wallet that holds your traditional cash. The crypto wallet is more like a digital app. It doesn’t store the cryptocurrency rather it keeps your holding live on the blockchain. Your cryptocurrency-like bitcoins will be easy to access with the help of a private key. This key holds a lot of importance and makes you the entire controller of your digital assets.

You can make transactions whenever you want. However, keeping your private keys safe is very much important. If you don’t have that, you will lose access to your digital money. This is the reason you have to keep your hardware wallet safe and sound. If this isn’t enough, you can make use of a wallet provider like Coinbase. They will keep your digital money and assets safe efficiently.

You don’t know what is blockchain find out here.

How to use a wallet?

How to use a wallet

Cryptocurrency wallets are simple and easy to use just like many other apps that you use on your Smartphone. There are different types of wallets available and this is how you can use them :

Paper wallets

In the paper wallets, the keys are written on paper while you can store them in a safe place. As it is digital money you can use it online only.

Hardware wallets

Hardware wallets are another type of crypto wallet that you can use. In this wallet, the keys are stored on a device. Whenever you want to use your currency you need to connect this wallet with the computer. The idea here is to keep your privacy intact and make easy transactions.

Online wallets

When it comes to online wallets, the keys will be stored in either an app or software. You need to look for an idea that the key is protected with two-step encryption. This will help you send, receive and store your cryptocurrency easily. The users can make use of it as a bank account that is used to store conventional money.

Use an app like Coinbase wallet

If you don’t want to use any of the above-mentioned crypto wallets, making use of an app can be effective. An app like Coinbase or Exodus will give easy access to your cryptocurrency. Here is what you can do:

  • It helps you manage all your currency in one place
  • You have control over your private keys
  • The user can send or receive crypto from any part of the world
  • Interact with your username rather than anything else
  • Browse dapps easily
  • Easily shop at the online stores that accept cryptocurrency

How can you send crypto from your crypto wallet? 

If you want to send cryptocurrency from your wallet to another other it is very simple. All you need is the wallet address of the recipient. You can open your wallet and select the amount of crypto you want to send to the other person.

How to choose the best crypto wallet?

How to choose the best crypto wallet

If you want to choose a crypto wallet here are something you can keep in mind:

Security

Each crypto wallet offers a specific amount of security to the user. You need to check it before saving your cryptocurrency in it.

Fees

The transaction fees vary from one wallet to the other. If you want to keep the costs low, in some wallets you have an option to customize the fees. However, this may slow down the transaction time.

Cryptocurrencies

There are a lot of cryptocurrency wallets that offer a wide range of cryptocurrencies. At the same time, there can be some that don’t offer such a big variety.

Customer support

Some companies offer good customer support 24/7. It is important to get in touch with a company that offers a lot of help and can solve your queries too.

Access

If you use your computer it is better to make use of a desktop wallet. Those who are more into using mobile can think about using a browser-based wallet. Whatever you choose must be according to your requirements.

Also read: what are the different types of crypto-currencies?

Conclusion

A Crypto wallet is just like a bank account that you can control on your own. Software wallets offer a lot of conveniences while hardware wallets are more for security purposes. To find the best crypto wallet for use, you need to keep your requirements in mind. We hope this guide will give you a comprehensive idea about crypto wallets and their use.

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