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Introduction on Crypto Wallets

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Introduction on Crypto Wallets

There is a lot to be said about blockchain technologies and cryptocurrencies that came out of them as a result. However, in this article, we talk about the most important part of the crypto network, one that ensures Bitcoin’s very existence – wallets.
There are many types of wallets and platforms that developed their own solutions. These storage programs differ in terms of security, cryptocurrencies supported, and additional services that they provide. If you are a beginner that wishes to purchase cryptos for the very first time, this guide is a must-read.

Crypto Wallets – What are They?

Putting it simply, wallets are storages for your cryptocurrencies. Think of it as a bank account, where you can deposit, transfer out, or withdraw fiat currencies, such as USD, CAD, SGD and others. However, whereas banks have numerous intermediaries, crypto wallets usually have one or none service providers.
As a part of the blockchain network, these wallets provide detailed reports regarding all of your transactions, recorded in the blockchain’s ledger of the cryptocurrency you are using. You can also have more than one cryptocurrency in a single wallet.
Crypto wallets use address codes, expressed in letters and numbers. The size of the code varies according to the cryptocurrency, with usual length ranging between 14 and 35 alphanumeric characters. Addresses are usually represented as QR codes for mobile phones to read easily. Just like your email address can receive emails, it can receive cryptos from others.
Example of BTC Wallet Address
Additionally, there are a few tools available to you, depending on the chosen platform. These include PIN code, passphrase, private keys, and multisignature (multisig) functions. The passphrase is a set of randomly generated words, used as a phrase for wallet recovery.
Multisig functions demand additional transaction confirmations from other users, providing time if someone is trying to steal your coins. Due to a large number of scammers, it is important to choose platforms that do not provide your information to third parties.

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