You can use a cryptocurrency wallet…..very famous nowadays. If you are not aware of what is a cryptocurrency wallet then this guide will help you to learn about the thing and use it to serve your purpose in the future. Read the entire article and check it out.
The Concept Of Crypto Currency Wallet
In simple terms, a cryptocurrency wallet is a kind of software to help you receive as well as send cryptocurrencies like Bitcoin. The software can be utilized as a storage device for multiple coins and tokens in no time. Nevertheless, many wallets are seen supporting limited cryptocurrencies.
Cryptocurrency wallets store private keys say for example big hexadecimal codes that only you & your new wallet are aware of. The code should be compatible with the public key to help you spend money at ease.
This is the entire concept of what is a cryptocurrency wallet.
Features Of Crypto Currency Wallets
Now that you know cryptocurrency wallet is a safe measure to store your digital funds and assets safely. The next thing you should know is about the features of the wallet.
Cryptography
This e-wallet makes use of the advanced features of cryptography in different ways. They evolved during the 2nd World War to make communication easy and at the same time secure.
The modern form has seen a great advancement based upon both the theories of Math and Computer Science. Two main elements used for cryptocurrency wallets are
- Hashing
- Digital Signatures
Blockchain Technology
This is a public, decentralized list of the transactions you do through crypto currency. They are added and recorded into the technology chronologically as a verifiable, permanent and open record.
Block Mining
This refers to the ways of linking new records of crypto coin
transactions in the form of blocks in the blockchain.
Steps To Create Cryptocurrency Wallet
Here are mentioned the set of steps on how you can create a cryptocurrency wallet. Here is how you should go about it.
Configure Wallet API
For this particular and important step, you should use the right platform such as GitHub. Get a code and then use it to configure your wallet API to manage the permissions.
Set Your Password
The next step is creating a password for your digital wallet. You already know it…. it still just a small reminder. Create a strong password including
- Letters,
- Numbers and
- Special Characters etc
Ensure the password is hard to crack and never share this password with anyone.
Set Up A Private Key
Remember I was speaking about the private key while discussing the concept of cryptocurrency wallets.
Yes, this is again a very important step in setting up a password. Create a strong private key through which only you can access your digital funds securely. Don’t share your newly created private key with anyone else.
Store Funds
After you have set up a new password and a private key the next thing you should do is store some of your funds in it. And do a test to check if it is working effectively.
Create A New Address In Your Wallet
This is the next step to use your digital wallet. You can also create your other existing address for the test.
Send lesser amounts to your newly added address and then check. If the wallet is working fine then you can start with crypto exchanges to those who use cryptocurrency wallets.
Types Of Crypto Currency Wallets
Software Wallets
There are various types of software Wallets and can be classified into the following sub-categories.
Web Wallets
To use the web wallets, you can access the browser interface without installing or downloading any app. This comprises both browser-based and exchange wallet providers.
In most of the scenarios, they allow you to create your own wallet (the steps mentioned above) and set up your personal
- Password and
- Private Key for accessibility
In other instances, service providers manage those from your end. But this can be dangerous especially if you are a newbie.
Check the technical approaches to decide upon the best.
Desktop Wallets
The name itself says – this is a piece of software that you can download locally and implement on your personal machine (check the steps on how you can create and use the desktop wallet).
Generally, these wallets are regarded as safer than web wallets as you have the password and private key.
But check your machine for malware and other viruses before installing and using the cryptocurrency wallet on your desktop.
Mobile Wallets
Quite similar to the Desktop Wallets these mobile wallets work for transferring and receiving funds digitally. However, they are designed as apps for smartphones allowing you to receive and send funds just by using QR Codes.
It makes it users quite easy to do the transaction regularly and easily as per their convenience.
But again there is fear of malicious attacks so encrypt your smartphone before installing and using the app.
Hardware Wallets
As the name itself implies they are electronic physical devices to use the RNG feature to create private and public keys for users. Keys then are saved into a device not having any internet connectivity.
This is often considered a more secure alternative to Software Wallets as they are free of malicious and online attacks. However, there is a downside as you cannot access hardware wallets everywhere when you need funds.
Paper Wallets
These wallets are papers wherein your private key and crypto address are printed physically as QR Codes. You can scan the codes for cryptocurrency transactions.
Few websites are allowing you to download their personal codes to create new keys and addresses even being offline. They can resist online attacks well but have certain limitations for which the user is not seen mostly.
Conclusion
Cryptocurrency wallets have become a great thing to receive and send funds digitally. Depending upon your requirements you can choose the right option for your wallet. And tell others about what is a cryptocurrency wallet and how to use it for easy transactions.
