For the transaction of cryptocurrencies you need Crypto wallet .It is very essential for buying, selling and trading of crypto-coins. It consists of software programs that store your public and private keys and can be connected with various blockchains so that you can receive and send money . To spend crypto-coins in your wallet and unlock the funds, the private key stored in your wallet must match with the public key . If the public and private keys match, the balance in your digital wallet will be debited or credited, and the senders wallet will increase or decrease respectively. There is no actual exchange of real coins.
There are several types of wallets that provide different ways to store and access your digital currency. Wallets are of three categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.
Desktop: wallets are installed on a PC or laptop. They work only on single computer in which they are downloaded. Desktop wallets are much more secure than other wallet. But you should be vigilant from computer virus and hackers.
Online: These wallets run on the cloud and are accessible from any computing device in any location. They are more convenient to access. Online wallets store your private keys online and since they can be accessed by a third party also, hence it is vulnerable to hacking and theft attacks .
Mobile wallets run by an App loaded on your mobile and can be used anywhere and at the retail stores also.They are usually simpler than desktop .
Hardware wallets– They are stored on a hardware like a USB drive. They make transactions online, but they are stored offline hence more secure .Making a transaction is easy with them since users simply plug in their device to any internet-enabled computer and enter a pin to send currency and them confirm it.
Paper wallets– They are easy to use and provide highest level of security. It is a physical copy or printout of your public and private keys. If you want to withdraw or spend currency, you just transfer funds from your paper wallet to your software wallet.
Security of Cryptocurrency wallets -Wallets are secure to varying degrees. The level of security depends on the type of wallet – you use (desktop, mobile, online, paper, hardware) and the service provider. A web server is relatively a riskier environment to keep your currency compared to offline. Online wallets can expose users to possible vulnerabilities in the wallet platform which can be exploited.
Popular 10 Crypt-Wallets Used-1- Blockchain wallet 2-eToro 3-Coinbase 4-Binance 5-Huobi 6-Metamask 7-Myecelium 8-Trezor one 9- Electron 10-Kraken.
Hot and Cold Crypto-wallets– Hot crypo-wallets are digital one, which are connected online.They can hold any crypto-currency and are usually are free. You have to just register for free and use it. Thus they are more convenient for multiple and fast transactions. But at the same time they are more vulnerable to hacking and virus attacks. If you use hot wallets, you must be vigilant and keep your antivirus and spam uptodate. Cold wallets-These are offline and hardware wallets, so they are much more secure and are all the time with you. Drawback is that they are expensive and can hold only limited no. of currencies like Bitcoin, Ethereum Dash and few More. So you can choose your crypo-wallet according to the need, whether you are aggresive trader in multiple currencies or want limited transactions with more security. For Beginners– Coinbase crypto-wallet is best, since it has user-freindly Interface ,easy to navigate and private key is stored in your drive . It has two factor athentication and supports more than 500 currencies.It can also store NFT . sctri48 Satish Tripathi firstname.lastname@example.org