What are cryptocurrency wallets and why are they very important in the world of cryptocurrencies.
To date, there are many cryptocurrencies and there are just as many wallets that allow them to be stored safely.
A wallet is very important because it allows us to own a certain crypto, everywhere and allows us to make transactions very quickly.
In addition, you can have them on a PC, smartphone, a sheet or a modem, in short, everywhere.
But let’s see together which cryptocurrency wallets we can use to have maximum security and ease of use.
What are cryptocurrency wallets
Let’s start by saying what a wallet is and how it works exactly before seeing which ones to use.
A “wallet” wallet is a cryptocurrency container that has multiple functions depending on the crypto itself.
Inside, one or many cryptocurrencies can be stored depending on the type, or we can have exchanges that allow exchanges.
The main thing about each wallet is that they connect to the blockchain to allow its integration with the entire network.
This is the main functionality of everyone who, precisely, allows you to have the entire blockchain on your PC or smartphone at your fingertips.
Thanks to this function, you have the possibility of being able to restore the wallet and therefore the entire amount inside it.
Each wallet has a Private Key and a Public Key, both of which are used for the correct use of the wallet itself.
The Public Key is a string of alpha numeric codes that appear on the blockchain, it is like an Iban of a bank.
With this code everyone can view the content of the wallet itself, however it cannot be connected to a person as anonymous.
With the public key it is possible to send or receive, within the wallet, any asset supported by the wallet itself.
Instead for the private key the difference lies in the fact that, from the name itself, it is an alpha numeric code not visible to everyone and therefore not visible on the blockchain.
In addition, this code will serve to restore the wallet in case of cancellation or movement to another device, because it shows who the owner of the wallet is.
How cryptocurrency wallets are formed
Now let’s see what the wallets can be that we can use safely but above all they offer many important features.
The wallet structure is formed as follows:
- Online that always works connected to the Internet;
- Offline that can work even without the internet.
Then they are divided into:
- To a crypto that only support a cryptocurrency;
- A multiple crypto that is multicurrency which support multiple cryptocurrencies;
- Hybrids that support both the exchange and the deposit of cryptocurrencies or more functions.
And finally we have the various types that are:
- The web wallets that are managed by the web and do not need an installation;
- The desktop wallets that are installed on your pc;
- The wallet apps which are apps for smartphones and tablets;
- The paper wallets where the various cryptocurrencies are saved on a piece of paper.
- Hardware wallets that are portable usb devices.
More or less they have the same function depending on the use that is done with a given cryptocurrency.
In fact, for example, there are wallets that can generate a profit through lending.
Or wallets that allow you to stak your own cryptocurrency in exchange for a passive income such as Eos.
In short, there are all types depending on what you want to do.
But now let’s see for each type of wallet that I prefer and that you could use in complete safety.
I would start with the online cryptocurrency wallets that work with the internet in order to be connected to the network, also because they are the most used ones.
These wallets are very functional as they allow you to do operations that cannot be done with offline ones.
Furthermore, to date almost all wallets are multicurrency and hybrid, therefore each gives the possibility to perform multiple operations in a simple and functional way.
My favorite wallet is Exodus, a desktop wallet that works on your pc.
This downloadable wallet from here was one of the first to be created and is constantly updated allowing the continuous addition of cryptocurrencies.
It also allows you to swap with other crypto in a very simple way, because it supports an exchange within it.
Just go to any crypto, press the button of the two overlapping arrows, click the cryptocurrency you want and the system will swap for you.
It can also be connected with a Trezor or ledger type hardware wallet that allows the updating of both very quickly.
2. Blockchain.com Wallets
Another wallet I prefer is that I use it and that of the blockchain.com company that I find it very safe and functional.
This web wallet or app does not allow installation on your PC but allows access, both from the web and from smartphones with the downloadable app.
You can reach the wallet at this address.
It supports multiple currencies also allows you to swap and also allows you to store the crypto in a safe.
A wallet that is proving to be very functional is that of crypto.com, a wallet app accessible for now only from smartphones.
Its official page can be reached here and the app can be found on both the Play store and the App store.
This wallet is very functional because it allows, in addition to being multicurrency and having its own exchange, to generate liabilities from your crypto.
The earn feature allows you to lend cryptocurrencies and receive interest weekly.
In addition, it has recently created debit cards connected directly with its wallet.
4. Ledger nano Hardware wallets
Then there are the offline wallets that I use as a nano ledger and that I consider very safe and functional.
These wallets allow you to carry the various cryptocurrencies with you without having to be connected to the internet.
They can also subsequently be connected to a wallet for example exodus and update the balance sheet or swap.
This device can be connected to the computer via USB which can then be accessed internally, and can be purchased here.
The only drawback of this wallet is that it is a passive method in holding a cryptocurrency unlike the first ones that you actively participate in.
5. Paper Wallets
This type is not widespread due to the limited use of the wallet itself, however it is a very safe method of storing cryptocurrencies.
Furthermore, this method is ideal when you want to create an archive in a safe for example to better preserve your cryptocurrencies and stay out of the net.
A service that allows you to generate a paper wallet is Bitaddress.org accessible here.
With this service it is possible to generate a portfolio, then a public key and private key, in a very simple way.
After that if you want to look at the balance sheet just go to an Explorer depending on the crypto used and view the amount in the wallet.
6. other wallets
There are other wallets that we can use in the world of cryptocurrencies.
For example, there are specific wallets that are used for certain tasks such as that of Bitcoincore.
This wallet is the official one of bitcoin and allows you to have on your pc the whole bitcoin blockchain which today amounts to about 300gb.
In addition, by doing so you can participate in the network and confirm transactions on the blockchain.
Or even there are wallets that are used for masternodes such as Dash.
These wallets are specific to these specific cryptocurrencies and perform tasks such as staking and voting on a particular blockchain.
But there are others that I cannot describe everything in this article otherwise it will become a book.
But I invite you to do other research on this field, because that is where the beauty of research and discovery takes place.
To conclude this article I urge you to research multiple projects to try to understand how this sector works.
There are many wallets for cryptocurrencies to date but it remains for each of us to know which one is right for us.
Obviously each wallet has its own characteristics that reflect each of us, which we choose according to the type of operation.
For now it’s all I’ll wait for you in the next article.