What is a crypto wallet?

The Crypto Wallet is something that is constantly found in the cryptocurrency world and is important to master. Together, we’re going to understand what crypto wallets are and why they’re so essential.

Definition: what is a Crypto Wallet?

A wallet is a piece of software that allows you to store and manage your digital assets, such as cryptocurrencies. It generally consists of one or more pairs of private and public keys that are used to sign transactions and access assets such as bitcoin, for example. Crypto wallets can be installed on your computer or phone, or available online from a website. There are several types, such as software wallets, hardware wallets and paper wallets.

The importance of a wallet

The special feature of a cryptocurrency wallet is that it does not actually store the assets. They are, in fact, on the blockchain, and accessible via a private key. This key proves that the holder is the owner of his digital assets and enables him to carry out transactions in complete security. If the private key is lost, access to the assets is lost.

The different types of wallet

There are, of course, several different types of wallet, ranging from simple to complex in terms of security. The most commonly used types of wallet are :

• Paper wallets: the keys are written on paper. This makes cryptocurrencies much harder to access and use, as they can only be mined on the Internet and not like traditional coins.
• Online wallets: unlike paper wallets, private keys are stored on an application or software. Unlike a bank account, they make it easier to send, receive and use assets. It is preferable to use an application that is protected by two-stage encryption to guarantee a certain level of security.
• Physical wallets: keys are stored on a device such as a hard drive or USB key, which must be kept in a safe place and only connected to a computer by the owner. The aim is to strike a balance between security and ease of use.        Example of a paper wallet

  The difference between a hardware wallet and a software wallet is that hardware wallets are actual physical devices used to store private keys that do not require an internet connection, adding a degree of security, whereas software wallets are stored locally in software or online applications.

  What is a wallet used for?

  Some users have wallets containing assets, but don’t really know what they are for. Here’s what a Wallet can be used for:

  • Send and receive cryptocurrencies to and from anywhere in the world instantly.
  • Control private and public keys.
  • Navigate decentralised finance applications (dapps).
  • Manage all your digital assets in one secure place.
  • Shop in shops that accept cryptocurrency.

  Examples of well-known wallets

  Metamask

  Metamask is an online wallet that runs on the Ethereum Virtual Machine ( EVM ). It is therefore compatible with any EVM-based blockchain, such as Basic Attention Token and Binance Coin.

  Metamask is also known as a browser extension for interacting with Dapps (decentralised applications). It is compatible with Google Chrome, Firefox and Brave.

  Coinbase Wallet

  Coinbase Wallet is a standalone cryptocurrency wallet that gives you control over your cryptocurrencies, keys and data. It now allows you to securely store rare cryptocurrencies and NFTs in one place. The app supports hundreds of thousands of coins and a whole universe of decentralised applications.

  In order to maintain full control over your digital assets, you need a crypto storage wallet. Even if regulated crypto exchanges are reliable and secure these days, it is still better to store your digital assets outside these platforms.

  

  Ledger

  Ledger is a physical wallet that allows you to store your cryptocurrencies securely and without direct access to the Internet. As the private keys are isolated from any Internet connection, they will remain out of reach of hackers and digital threats.

  What’s more, the Ledger wallet is able to store a very large number of different crypto-currencies. In fact, it can hold up to 5,500 coins and tokens with the help of its application, from a computer or smartphone.

  To maintain total control over your digital assets, you need a crypto storage wallet. Even if regulated crypto exchanges are reliable and secure these days, it is still better to store your digital assets outside these platforms.