What is a Crypto currency wallet? Introducing the best wallets

Before we get into the technical details of a Crypto currency wallet, let’s talk a little bit about your specific way of saving money. Think about how you save your real cash. Definitely do not hold it in your hand, but store it in a wallet or in a secure bank account. Cryptocurrency wallets follow the same basic principles. As a result, with an encrypted wallet, you will be able to send and receive bitcoins and other cryptocurrencies.

“Wallet” or Crypto currency wallet is a software program that stores private and public keys and interacts with various blockchains so that users can send, receive their Crypto currency and monitor their account balance. If you plan to use Bitcoin or any other Crypto currency, you must first have a wallet. There is no Crypto currency in the wallet itself. Bitcoin and its derived cryptocurrencies are stored decentrally in a public office called Blockchain.

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How does a Crypto currency wallet work?

In a regular bank account, money, or rather, its value is kept. But in Crypto currency wallets, public and private encrypted keys are kept. In fact, coins cannot be stored in a physical wallet. Because cryptocurrencies do not have a physical existence. The wallet address is something like a bank account number. There is no problem if you give your bank account number to someone else, because others need it to transfer money. In the world of Crypto currencies, if someone wants to send you your coins, you can simply give them your wallet address and receive your coins. Just like bank accounts, neither wallet address is the same. As a result, no one but you can receive your money. Also, the number of addresses in your wallet is unlimited. This means that you can create as many addresses as you want for your wallet.

For example (in the case of Bitcoin) this is the wallet address that is thought to belong to the creator of Bitcoin, Satoshi Nakamoto :

1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa

As you can see, this address is a complex combination of uppercase and lowercase numbers and letters. Because most blockchains are transparent, it is easy to see how much money a particular wallet has and what financial transactions the owner has made in the past. However, the address of a currency wallet does not reveal the true identity of its owner.

How do public and private keys relate to a wallet address?

Most people think that a public key is something like the address of a public wallet. But in reality, each person’s wallet address has a unique private and public key. The private key allows you to access the money associated with your crypto wallet address. Let us give an example to better understand this issue. Imagine that you want to transfer money from your bank account to someone else’s bank account, in which case you must first enter your personal password. No one else has access to this password, not even the bank. Otherwise, if someone finds out, they can transfer money from your bank account! The private key does exactly the same thing and is specifically linked to your personal wallet address.

What is the public key?

The public key is mathematically linked to your wallet address! However, it is a “hash version” . The hash function allows you to encrypt the letter / number sequence called “input” in a new set of letters / numbers as “output”. In fact, it opens the door to a layer of security and ensures that your wallet can be hacked.

for example:

Example of a private key:

03bf350d2821375158a608b51e3e898e507fe47f2d2e8c774de4a9a7edecf74eda

Example of public key:

99b1ebcfc11a13df5161aba8160460fe1601d541

At first glance, these two keys may seem completely different, but software technology recognizes that the two keys are specifically related to each other. The connection between the keys proves that you own the coins and allows you to transfer your money whenever you want! In fact, you do not have to worry about the technology and the adventures that take place in the background. Crypto currency wallet transactions are a bit like using Gmail and Hotmail. The software does all the work for you.

Different types of Crypto currency wallets:

There are several types of wallets available to the public. The wallet you choose depends on your personal needs. Basically, different wallets offer different features such as security, user-friendly behavior or even more convenience.

The most popular types of Crypto currency wallets are:

Wallet on the desktop

Wallets on the desktop must be downloaded to a specific laptop or computer and are only accessible from that particular device. In general, these types of wallets offer a good combination of security and convenience. Keep in mind, however, that if a hacker gains the ability to remotely control your device, they can easily access your wallet.

Mobile wallet

Mobile wallets are very similar to desktop wallets. Because this type of wallet is also downloaded directly to your device. You can usually access your cryptocurrency wallet by downloading an app on your mobile phone. Such access allows you to spend your coins in a store by scanning the QR code.

Wallet online or on the web:

Wallet on the web gives you the best level of convenience when sending coins to others. However, this wallet has the lowest level of security. Because usually the manufacturer of that wallet has complete control over the system. An example of such a wallet is storing coins in a cryptocurrency exchange. This exchange stores your coins on its central server. If this server is hacked, the hacker can access all of your money. It is best to keep only a few of your coins on your web wallet.

Paper wallet:

Paper wallets are one of the least valuable crypto wallets. All you have to do is print your public and private keys on a piece of paper and you can easily keep your money safe. Because in this method, the keys are not connected to any server. As a result, there is no other way but to have access to that paper to access the wallet. When you need to transfer money, you can simply enter the keys into a software or web wallet, or even simpler, just scan the printed QR code.

Hardware wallet:

In terms of security, no wallet is better than a hardware wallet. A hardware wallet is a physical device whose sole purpose is to store your public and private keys. This device only connects to the Internet if you need to transfer money. When transferring, you must enter your personal PIN directly into the device. This makes it almost impossible for hackers to access your keys.

Can we store all our cryptocurrencies in one wallet?

This is a very important question and the answer depends on the coins you have. For example, if you only have bitcoins, you should have a wallet that is compatible with bitcoin Crypto currency.

What if you have a bitcoin and lightcoin Crypto currency?

Although each has its own blockchain, a multi-currency wallet can be used. Multi-currency wallets allow you to store different cryptocurrencies in one wallet. This is much easier than using different wallets for different coins. However, it all depends on what features your wallet supports.

Are cryptocurrency wallets secure?

In general, no matter what Crypto currency wallet you use, if someone has access to your private key, they can also access your money. The key question is, what can be done to prevent this from happening? Any Crypto currency wallet that is connected to the Internet – for example on a desktop, mobile or web – always carries the possibility of vulnerability. Hackers are always finding new ways to access other people’s information, so you need to do whatever it takes to protect your private key.

What is the best Crypto currency wallet?

Exodus Exodus:

Exodus is a desktop multi-currency wallet that allows you to store a large number of different coins such as Bitcoin, Lightcoin, Dash as well as various ERC-20 tokens.

Bread Wallet:

It is a kind of Crypto currency wallet on mobile that is very user-friendly and great for beginners. An interesting feature is that with it you can scan the QR code of the wallet of the wallet you want to send money to, and as a result, spend your bitcoins in a real store. Unfortunately, Bitcoin is the only cryptocurrency that this wallet supports. But do not forget that it is completely free!

Ledger Ledger Nano S:

For the ultimate in security, the best option is a hardware wallet, such as the Ledger Nano S. With Ledger Nano S you will receive a physical device that allows you to store a wide range of different cryptocurrencies offline. When you want to send this Crypto currency wallet to someone, you have to connect the wallet to your device (like a laptop) and then enter your personal PIN.

Jacks Jaxx:

Jaxx is one of the most popular multi-currency wallets available for download on most desktops and mobile phones. For added convenience, you can access your wallet through the Google or Firefox plug-in and send the money you need.

This bag is a great option for those who are new to the world of cryptocurrencies, however, this bag also has rich features for experienced users of cryptocurrencies. The Jaxx wallet was created by Decentral, a leading Canadian blockchain company founded by Anthony Di Yurio, who was also one of the founders of Atrium. For this reason, this bag has been the choice of millions of currency password users.

MySelium:

MyCelium Wallet is one of the oldest and most popular Bitcoin wallets available, first released in 2013 as an Android app and later transferred to iOS. By opening the app, you will quickly understand why users like it. have. You will find a simple and unique user interface that gives you your wallet and you can read its tabs easily. You will see the current BTC exchange rate as well as the send and receive buttons and easy QR code.

In addition to ease of use, Mycelium Wallet is incredibly accessible, meaning it fulfills the promise of using Bitcoin in a practical way. Send and receive BTC anywhere, anytime.

Trezor wallet

Treasury is a subsidiary of SatoshiLabs, a Prague-based company. SatoshiLabs itself was founded in 2013, although its founders Pavol Rusnak (also known as Stick), Marek Palatinus (known as Slush) and Alena Vránová had been working on secure key storage solutions for some time.

There are two big players in the field of hardware wallets and they dominate the market. Imagine the same Mastercard and Visa cards for credit cards or iOS and Android for mobile operating systems and get the picture. These two main competitors are France’s Ledger with their two famous products, Nano S and Nano X, and their big competitor, Treasury. These two are Trezor ‘s flagship products, namely Trezor One and Model T , which we will examine in detail here.

Coinomi wallet:

Quinomi is a well-known and popular cryptographic wallet that can store more than 500 currencies and is supported on multiple devices.

The wallet focuses on protecting users’ privacy and is still one of the safest wallets on the market, despite a slight failure in 2019. Quinomium also allows you to convert your currencies from within your wallet to other currencies. In addition, it is quick and easy to install.

This wallet has a wide range of currency coverage that provides support and ownership of more than 125 blockchain assets. It also supports more than 382 tokens. Since this wallet supports the ERC20 standard , you can add as many custom tokens as you want.

Conclusion:

There are many types of Crypto currency wallets designed to meet different needs. The best choice for you is a wallet that covers your Crypto needs and currencies. For more security, you can use hardware wallets. If you travel a lot or are busy, keep a small number of your Crypto currencies on your mobile phone so that you can easily access your money.

How does a Crypto currency wallet work?