What is a cryptocurrency wallet?

kozhametov - 2024-07-24 07:40:12

What is a cryptocurrency wallet?

Imagine there is a wallet in your pocket, which contains not only your cash, but also important information such as your credit card and ID card. Cryptocurrency wallets play a similar role in the digital world, except that they are specifically used to store and manage cryptocurrency.

A cryptocurrency wallet can be a computer software, an APP, a browser plug-in, a small hardware device, or even some special information on a piece of paper.

It mainly does two things:

Custody keys: Cryptocurrency does not exist in a file or physical form, it is actually recorded on the blockchain. Your wallet will have two keys. One is the public key, which can be understood as your bank account number. You can tell others to transfer money to this account; the other is the private key, such as the PIN code of a bank card. , very private, and having control over it means you can control the funds in it. The key point is that you must keep your private key safe. Once it is lost or known to others, your cryptocurrency may be lost.

Send and receive cryptocurrencies: Through your wallet, you can send cryptocurrencies to and receive cryptocurrencies from others. When performing these operations, you are actually operating information on the blockchain, telling the network how much currency you want to transfer from your account to another account.

If you compare it to a real-world wallet, a cryptocurrency wallet is like a wallet with two important parts:

Address: This is like your bank account number. You can tell anyone this account number, and others can transfer money to you through this account number. In the cryptocurrency world, this public key is usually a wallet address.

Private Key: This is like a bank card password. It must be kept strictly confidential and known only to you. This private key can authorize the transfer of digital currency in the wallet. If someone else gets your private key, it is equivalent to getting the key to withdraw the currency in your wallet.

Another important point is the security of your cryptocurrency wallet. Software wallets are more convenient, but may be attacked by viruses or hackers; while hardware wallets are slightly more troublesome to use, but more secure because your keys are stored on an offline device and are not easily stolen by cyberattacks.

kozhametov Summary: Simply put, a cryptocurrency wallet is a tool that allows you to securely manage your crypto assets and conduct digital currency transactions with others in the world.

Recommended wallet

Ethereum browser plug-in wallet

MetaMask: Commonly known as "Little Fox", it is a browser plug-in wallet that supports Ethereum and its derivative tokens and can be used on Chrome, Firefox, Brave and other browsers. At the same time, MetaMask also has an APP version, which can be used on mobile phones.

App

imToken: A mobile wallet that supports Ethereum and its derivative tokens, as well as multiple mainstream digital currencies such as BTC and EOS.

rainbow: A mobile wallet that supports Ethereum and its derivative tokens, as well as multiple mainstream digital currencies such as BTC and EOS.

Hardware wallet

Ledger: A hardware wallet that supports multiple mainstream digital currencies such as BTC, ETH, XRP, EOS, and TRX. Suitable for storage of large amounts of assets.