Cryptocurrency Wallet: What is it and what is this wallet for?

While cryptocurrencies continue to grow in followers and investors, we must know some concepts associated with them. One of the most recurring is the wallet, also known as a cryptocurrency wallet.

We invite you to discover what cryptocurrency wallets are , how they work and which are the most recommended ones that you can use when making transactions with these values.
 

In this article we are going to explain in detail what they are about, what they are for and how you can get one.

What are cryptocurrency wallets

Physical money is kept in a wallet. You take what you need to make a payment and keep the excess there.

Cryptocurrencies have a peculiarity, they do not exist physically , that is, neither Bitcoin, Dogecoin nor any of the more than 8,000 other coins are issued.

Therefore, a cryptocurrency wallet is a virtual place where you can store them, although this is not entirely true, but we will clarify it later.

So, a wallet is nothing more than a digital account , so to carry out operations with these values ​​you will need one.

Practically, any cryptocurrency has its own wallet, although there are others that are used with any of them, thus gaining convenience and operability.

How a cryptocurrency wallet works


These wallets have a very simple operation , since it consists of a public key, which is the one that you provide when you want to receive a payment with a cryptocurrency.

If we make an analogy with a platform like PayPal ; It is similar to giving your email to someone who is sending you money. In a wallet, the email is replaced by a public key , which is a string of numbers and letters.

When a transaction is carried out in a virtual wallet, it is replicated on all the computers involved using a private key, which is recorded in all the blocks of the chain.

In this way, it is impossible to make modifications , which is why these transactions are so secure. On the other hand, the bigger a virtual wallet is, the more secure it will be, this is because your private key is registered in more blocks.

Therefore, a cryptocurrency wallet consists of the public key, which anyone can know and that identifies you, the private key, of which only you are aware, and that amount of values ​​that you have stored in different types of cryptocurrencies, it does not matter. that are Bitcoin, Litecoin or whatever you want.

The cryptocurrencies are then connected to your public and private key . The cryptocurrency wallet then acts as a great record book, since blockchain technology is nothing more than that, a huge database.

The different ways in which a wallet is presented


The wallets can have different shapes. We start with the simplest, your public key written on a piece of paper .

It will be enough to consult it and send it to the contact you want to receive your cryptocurrencies. It should be said that it is free of any type of computer attack

The momentum of cell phones is a multitude of wallet applications that we can trust. They usually work quite well, and if you follow some basic security rules with your device, you won't have any kind of problem.

You can also access your voucher through your computer's browser, all you have to do is enter your username and password to access your wallet. It is even possible to find wallet applications for computers, whether you use the Windows system or it is a Mac.

Finally, we highlight the physical wallets. It is a device that looks similar to a USB memory and that you must connect to a computer to be able to use it.

They are very safe, but they have two drawbacks: on the one hand, their high price, and on the other, the possibility of losing the device.

These are the most used cryptocurrency wallets


You can use any wallet you want, although many people opt for the official one of the cryptocurrency itself. But that presents the drawback, we must manage several at the same time if we have our assets distributed, so having a single centralized wallet is always a good idea.

Among all of them, perhaps Coinbase stands out as one of the most used due to the high security standards it employs. Both in its version for mobile devices and web browser, we find a very clean and easy-to-use interface.

Coinomi is also aiming strong. It was founded in 2014, it has 125 blockchain networks and 382 tokens . It can be used through a mobile application or from your own computer equipment. Like Coinbase, it is very intuitive in terms of its use.

Now that you know what a cryptocurrency wallet is , it can be an interesting starting point to start using them and make your first transactions with them. It is not about the future or science fiction, millions of operations are carried out daily using these wallets.

 

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