In your daily life, you need a wallet to keep your cash, and for the protection of your credit cards, in the same manner, you must also know where and how you are storing your crypto.
For buying cryptocurrency on an exchange, you have two options to leave the keys within the account with coins or move them off to a personal crypto wallet. These are the storage forms of digital currency protected by connecting to the internet or a cloud storage offline device. Here is what you should need to know about crypto wallets and their usage.
What is a crypto wallet?
Crypto wallets keep your digital currency safe and secure and make it accessible for you by storing your private keys or passwords. It also allows you to send, receive and use cryptocurrencies like Litecoin, Ethereum, and Bitcoin.
They come in different forms, including hardware wallets like ledger (USB stick) or mobile apps like Coinbase wallet, making crypto as easy to use as shopping with a credit card.
Importance of crypto wallets:
Cryptocurrency wallets don’t store your crypto technically like a regular wallet. Your assets are live on the blockchain and can access with a private key. Your keys are proved of your ownership of the account and allow you to make transactions. So always try to use a trusted wallet provider like Coinbase.
How to use a crypto wallet?
Simple to use apps to more complex solutions, the crypto wallets are of wide range including:
- Hardware wallets:
Your private key is secure in a device that is only used by connecting to a computer.
- Paper wallets:
Private keys are written on a physical medium like paper and stored safely and securely. It’s a difficult way to use crypto because of the absence of the internet.
- Online wallets:
Private key stored in a mobile app or software with two-step encryptions. The easiest way of sending, receiving, and using crypto is like online bank account transactions.
The forgoing cryptocurrency wallets have their pros and cons. the first two are hard to use because of their offline availability. Online wallet is the most used one also offered by Coinbase exchange.
Randal has been following the crypto space since 2013. He is a passionate advocate for blockchain technology, and believes that it will have a profound impact on how people live their lives. In addition to being an avid blogger, Randal also enjoys writing about developments in the industry as well as providing useful guides to help those who are new to this exciting frontier of finance and technology.