With the advent of cryptocurrency, the modern world has changed. A new alternative to the usual money (digital money) has become so popular that many countries have recognized it and have begun to implement it (USA, Canada, Australia, EU, etc.). In some places, cryptocurrency can be used to pay for a product or service.
Such popular companies Amazon, Subway, Microsoft accept and use it as a means of payment. Cryptocurrency attracts shareholders, investors and all people who see freedom and opportunity in it. After all, the main feature of digital money is that it does not obey any bank, but exists independently. However, in order to conduct financial transactions with cryptocurrency, you need to acquire a cryptocurrency wallet. Users have questions: what is it, how to choose and what to do. This is exactly what we will talk about in this article.
What is a crypto wallet?
A crypto wallet is a space to store your digital savings. With it, you can transfer funds to other users. Wallets exist in the form of programs and online applications that store the history of transactions.
Based on this, there are two components of any crypto wallet:
- Public key. This is the so-called wallet address, which is visible to everyone. It can be compared to the card number.
- Private key. This is actually something like a password that opens access to your savings.
In the world of cryptocurrency, money is not fixed for a specific person. Whoever has access to the private key from the wallet has all the funds stored there. Therefore, when choosing a wallet, the main aspect is reliability.
Types of cryptocoin wallet
“hot” and “cold”
The hot wallet differs in that the work with the currency takes place on an external service. Private keys are on the same device (laptop, phone) as the money management application.
This type of crypto wallets includes:
- Online wallet. It is an Internet service that the user accesses via the Internet. The work takes place online.
- Paper wallet. A special site generates keys to the user, they are printed and stored on paper in the form of a QR code. Information about keys from the site is instantly deleted.
- Exchange wallet. Operates online on a specific exchange, but only with those currencies in which the exchange specializes.
- Software wallet. It is a program that will be loaded on your computer. The software wallet is divided into “thick” (contains the chain of the entire blockchain network, therefore it weighs a lot, takes a long time to load) and “thin” (interacts with the blockchain network, which is stored on a remote service)
A cold wallet means downloading a specific program to your computer or phone. Private keys from the address where the money is stored are stored on an external device (such as a flash drive).
Such a wallet is called:
Hardware wallet. It is a removable storage medium where the program with your wallet is stored. The main thing here is not to lose the carrier and not to forget the password.
Where to buy cryptocoin wallets?
To choose the right wallet, you need to determine the purpose and frequency of use. If you plan to use it for private and small transfers, then an online wallet will do. Security is average, but the speed of operations is excellent. If, on the contrary, the amount is large and transfers are frequent, then in this case a cold thin wallet will do. Hardware and paper wallets are good for storing large amounts of money where durability and security are important. A software thick wallet is suitable for savings.
When choosing a wallet, pay attention to its safety, convenience and functionality.
As we understood, there are many different types of cryptocurrency wallets. When choosing it, start from those criteria that are important to you. But it is worthwhile to understand that in the world of cryptocurrency, you yourself are responsible for your money. Therefore, in addition to a good wallet, do not forget to regularly update the anti-virus system and create backup copies of the keys. Then everything will definitely be fine!