Owning a cryptocurrency is impossible without a cryptocurrency wallet, so today we will talk about what it is and will simultaneously touch on the technical part a little.
A crypto wallet is a means by which you can store your cryptocurrency, as well as send and receive it. And since cryptocurrency has no physical embodiment, the wallet is also actually just an "account number" that stores your money in one or more currencies.
Also, the concept of a crypto wallet cannot be considered without mentioning its two most important components - keys. There are only two of them:
With all the similarities to ordinary bank cards, one should not forget about the main distinction of cryptocurrency: all operations performed in it are irreversible - this is the basis of the blockchain. Irreversibility is achieved by creating a mathematical digital signature for each transaction based on the private key. Despite the fact that there is always only one private key, it can be used to generate different signatures by applying cryptographic methods. Moreover, the public key is likewise used to create the signature. Speaking in plain terms, the signature confirms both the account from which the user seeks to transfer funds and his "password" to make the transfer.
It is worth recalling another hallmark of cryptocurrency -the anonymity of wallets. And if a bank account with a linked plastic card is almost always opened based on passport data, a crypto wallet is not linked to one person. Therefore, the one who owns both keys may be considered the rightful owner of all funds on it. This is why the issue of security, or rather, the reliability of storing the private key should be given special attention. This problem is also solved by using a crypto wallet.
The list of the existing types of wallets is very diverse. They include:
In addition, all wallets are divided into two types:
You can choose the most suitable crypto wallet, including the one that allows you to work with a particular currency.
To create a ‘hot’ crypto wallet, you just need to go to one of numerous specialized sites and register a wallet on it. To create the wallet, you just need to enter an email address and, sometimes, a phone number, as well as come up with a password for access. A similar procedure is applied in mobile applications.
In addition, you may need to download a wallet backup copy upon registration. It may come in handy for re-accession.
In this case, the procedure is reduced to obtaining a pair of keys, which you can save in any convenient way, even by writing them down in a notebook. Admittedly, to work with this wallet, notably, to find out the balance, you will still need online services.
You can use one of the many wallet generator sites that allow you to obtain random and unique addresses and print them as alphanumeric strings or QR codes for convenient storage and use.