What is a Cryptocurrency Wallet?
April 8, 2021 0 Comments
Cryptocurrency Wallet is a digital tool you can use to interact with the block chain network. Crypto wallets store cryptocurrencies. They work as a gateway that provides the tools a user needs to communicate with the block chain. It has a private key associated with it. As a user always keep the private key safe. These wallets can generate all the information we need to use cryptocurrencies. These allows you to take control of your cryptocurrencies.
The various types of wallets can be divided into three main groups. All these wallets can also be referred as Hot or Cold wallets.
3 main groups.
- Software Wallet. You can avail this wallet in 3 forms: online, mobile and desktop. The currency are found and stored as a software on a device.
- Hardware Wallet. This enables you to store your cryptocurrencies in a physical device which looks like a USB drive. It stores your private keys and do not expose them to the outside world. It provides defense against cyber hacks, fishing scams and key loggers.
- Paper Wallet. It is a hardcopy or a printed piece of paper. It will have keys and QR codes that will be used in any cryptocurrency transaction. The information cannot be found in the Internet thus many find this option safer.