Instead of storing the actual coins, a crypto wallet contains the information that can be used to access the cryptocurrencies and make transactions
A basic guide to cryptocurrency wallets
Crypto wallets, as the term suggests, are digital wallets that you can use to store, send or receive digital currencies. Instead of storing the actual coins, a crypto wallet contains the information that can be used to access the cryptocurrencies and make transactions; this information is essentially known as a "cryptocurrency key."
The cryptographic key that we mentioned above is the basis on which every cryptocurrency wallet operates. These digital wallets can be divided into two categories: software and hardware.
Crypto Wallet Software:
Software wallets, better known as “hot” crypto wallets, are accessed through smartphone apps or a desktop computer. While these wallets allow you to be in full control, they are, at least theoretically, vulnerable to cybercrime activity as they are always connected to the internet. There are different types of software wallets, such as:
Web Wallets: These wallets can be accessed using any supported web browser.
Mobile Wallets: These wallets are portable, which means you can take them with you wherever you go. However, this portability is also what makes mobile wallets the most susceptible to malware.
Desktop Wallets: Desktop wallets work the same way as their mobile counterparts; the only difference is that desktop wallets are installed directly on your computer, while private cryptographic keys are added to the computer's hard drive.
Hardware Crypto Wallets:
Hardware, or "cold" wallets, on the other hand, make use of physical devices to store the cryptographic keys. This means that these wallets do not need to be connected to the internet at all times, making them a harder target for hackers and cybercriminals. If you want to make a crypto transaction through a hardware wallet, all you need to do is connect your device to your computer or phone, which means your private keys will not be compromised.
However, compared to software or wallets, hardware ones can be quite expensive; most hardware wallets cost between $100 and $250.
Cryptocurrencies have become increasingly popular in a very short time, due to their many advantages; some of those are:
Convenience:
With a crypto wallet, all your cryptocurrencies are present in one place, making it easy for you to transact. Plus, keeping track of your various digital assets becomes easier and less hassle.
Security:
Keeping coins safe is perhaps the top priority for any cryptocurrency trader or investor. With crypto wallets, especially hardware ones, you can rest assured that your digital currency remains safe and immune from any malware attacks or other cyber threats. This means you can transfer, receive, or transact without having to worry about vulnerabilities.
Easy to use:
Most crypto wallets are simple, intuitive, easy to use, and have simple, easy-to-understand dashboards. This means that you won't have to spend a lot of time and effort understanding how your crypto wallet works, and can instead spend your energies making investments, and transactions, and keeping track of your coins and their price/value.
A crypto wallet is perhaps the best way to store, track and invest your cryptocurrencies. However, before choosing a wallet, you should make sure that it meets your specific requirements. It should also ensure safety and security, be easy to use, have monitoring and tracking features, and give you full control over your digital assets. We hope that this short guide, covering the basics of crypto wallets, will make it easy for you to choose the perfect digital wallet during your exciting crypto journey.
