How Do you Use a Crypto Wallet?
There is an array of crypto wallets ranging from simple-to-use applications to more complex security solutions. The major wallet types available are as follows:
- Paper wallets: This is whereby keys are keyed on a physical medium like paper and placed at a secure location. Its use makes crypto hard to use as it is purely electronic money, only meant for internet transactions.
- Hardware wallets: Keys are kept on a thumb drive that is kept safely, it is only connected to your computer whenever you want to (“type of wallets you can choose from”).
- Online wallets: App or other software stored keys are guarded by two-step encryption.
This makes sending and using your crypto as easy as any bank account, payment, or brokerage online system. Each type has its trade-offs. Paper and hardware wallets that are stored offline are harder for malicious actors to access whereas their functionality is limited and they risk getting lost or destroyed.
What is Crypto Wallet?
Cryptocurrency wallets work like digital safes for storing and dealing with your virtual belongings. When you get cryptocurrencies, they are no longer saved in a physical location like traditional money, instead, they exist on the blockchain, a decentralized virtual ledger. Your pockets would not maintain actual cash but instead your precise personal and public keys.