By Steven Krohn · March 12, 2018
“At their core, cryptocurrencies are built around the principle of a universal, inviolable ledger, one that is made fully public and is constantly being verified by these high-powered computers, each essentially acting independently of the others.” – Paul Vigna
The address and key may be stored electronically or via paper as long as you save it and remember where you put it.
A wallet can be online or offline. Online wallets can one of two types – first is a wallet that is accessible at various locations, second is a wallet stored on your PC. The offline wallet can be an equipment- based wallet. This is much the same as a memory card or garbage drive that can be accessed using a USB port.
As Cryptocurrency depends on code, the most secure method to protect your wallet is the paper-based option.
Without cryptographic money wallets, coins would be nothing as it’s the main way people embrace advanced currency standards. Cryptocurrency wallets are similar to the wallets that most of us have to carry cash and credit cards. Essentially, these wallets enable people to own cryptocurrency.
Just like banks have account names and numbers; cryptographic currencies have addresses to each wallet on the blockchain. That wallet has a public address and a private address.
The public address is where you acquire tokens or altcoins. The private address gives you access to your wallet to send tokens or altcoins.
Types Of Wallets:
A hardware wallet is set up with what’s known as a “seed expression“. This is a series of words (which are unique to you) that help you regain access to a wallet should you lose or damage it. Setting up a hardware wallet is simple, just connect it to a USB port then download the related programming.
Yes, it is absolutely necessary.
Each specific Cryptocurrency requires it’s own digital wallet where coins can be stored. There are many types of digital wallets such as desktop wallets, mobile wallets, web-based wallets, etc.
At first, wallets can certainly be difficult to keep track of if you invested in multiple currencies. Why? You require a different wallet for each coin, which is time consuming and requires space.
With the huge demand and awareness now of cryptocurrencies, the wallet process has been refined and simplified. Extensive time and effort has been invested to make the system more effective and efficient.
There is no such thing as a single wallet that stores every kind of coin. You will have to determine which wallets you need based on which coins you own.
It is extremely important that crypto holders never share their wallet password or private key with anyone.
To emphasize, when you send or receive coins you only need to share your public cryptocurrency wallet address.