What Is Crypto Currency Wallets
I’ve come across different question about crypto currency wallets and it’s either people are asking about the best wallet to store there coins or for a safe wallet but the recently someone asked me a very important question he said
“What is a crypto currency wallet?”
It never occurred to me to explain what a crypto currency wallet is not today I will be explaining in the most simplest form what crypto currency wallet is.
Just like you need a wallet or a purse for your fiat currencies (normal currency) you also need a wallet for your crypto currency exchange, the difference is that, while the normal currency makes use of physical purse or wallet, cryptos makes use of digital wallet, also known as mobile wallets.
You might have read articles online confusing you with many grammar about these wallets, but well it’s not as difficult as they made it look. Each crypto wallet comes in form as an app, ( it is an app) you can get these apps on play store) that is why it an electronic wallet. Then store them on your phones and secured them with private security number, the crypto currency wallets is just like your mobile banking app, the only difference is that while one houses a fiat currency, the other one harbors a digital currency that you can’t touch.
So, crypto currency wallets is a device , program or a service which stores the public and/or private keys for cryptocurrency transactions. In addition to this basic function of storing the keys, a cryptocurrency wallet also offers the functionality of securing and or signing information. Signing can for example result in executing a smart contract, a cryptocurrency transaction.
Once you download a crypto currency wallets from play store you will be required to sign up and by signing up you’re creating a data base for yourself and imputing your accurate information. A username might be required, a strong password too, then you will be provided with a receiving link, these links will be generated automatically, it’s just like your back account number but this time it comes in form of a link, this receiving link will help you to trade, receive and exchange crypto currencies, it is wallet address and any crypto currency that gets sent into your address becomes your automatically and will need your full consent or corporation to be sent back or removed from your wallet except of course your security details were compromised.
Different crypto currency uses different wallets, this means some coins are only compatible with a particular wallet, only a few wallets serves as a multi purpose wallet that can store all the coins together. We might discuss about these coins in our next topic.
You will also be given a recovery details for your wallets, this is known as your private keys, now if there’s something you should treasure so much it is your private keys, with your private keys someone can have access to your wallet and do away with your coins, even without knowing your password, that’s how important it is, it was made as a form of recovery tools in case if you forget your password.
So mostly, when choosing a wallet, you have to be careful to choose the right one for your coin and also you have to be very careful who has access to your private keys , no one can take your coins without your Private keys except in the cases of hack which is not likely to happen.
So now I believe you know what a crypto currency wallet is and how what it is used for. We will taking about the many available crypto wallets scattered all over and the wallet that can harbor each coin.
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