A cryptocurrency wallet gives you access to your digital assets and keeps your private keys safe and accessible.
In some ways, it's similar to a physical wallet or purse;
- you can have multiple wallets
- you can swap wallets at any time
- you should have sole control of it
Hardware Wallets - Store your private keys offline with a special device
Paper wallets - Store you private keys printed on a piece of paper (or metal) so it never touches the internet.
Mobile Wallets - Manage your assets from your phone
Web Wallets - Access your assets via a web browser
Desktop Wallets - Convenient access on macOS, Windows, or Linux
As mentioned above, cryptocurrency wallets are available in either software or hardware forms. A cryptocurrency wallet, unlike a conventional wallet, does not store your currency but holds a set of keys instead, your actual cryptocurrency is secured on a blockchain.
Public Key - a string of numbers you can share without compromising the security of your wallet that lets you receive cryptocurrency.
Private Key - another string of numbers that gives you access to your currency on the blockchain, for this reason, they should be kept confidential.
To send cryptocurrency to another wallet is relatively straightforward. Simply open your crypto wallet, select the amount of funds you want to transfer, and type in the address you want it to go to.
Address - similar to a physical address, it's somewhere assets can be sent to.
Wallet - allows you to view your account balance, send transactions, and manage your funds.
The financial independence that cryptocurrency provides demands an awareness of how to secure your assets and keep them safe. There’s no customer support in crypto.
Do Your Own Research
Before trusting a company with your assets, please do your homework on how they keep your assets safe and how reputable they are.
Keep Your Seed Phrase Safe.
A seed phrase is a combination of random words dictated to you by your wallet, which you can use to recover your wallet should you need to. There are various ways to keep your seed phrase safe, but the cheapest option is to write it down and keep it somewhere private. Do not store a photo of it online or record it on your computer where hackers can access it.
There is no customer service hotline for your wallet. If you make a mistake and send assets to an incorrect address, say goodbye because it's gone! So be careful, check and check again.
Similar in some ways to a physical wallet, it's all about keeping your assets safe and accessible. Available in several online and offline formats, they keep your keys secure as long as you keep your seed phrase private. Turn over the page to learn about PoW.