Wallets: Safeguarding Your Cryptocurrency

Wallet is a place where cryptocurrency users can store, send and receive digital assets.

What is Wallet?

Similar to the way you would store banknotes and coins in a wallet, you can do the same with cryptocurrency. Cryptocurrencies come in all kinds and sizes. Some can support only one digital asset, such as Bitcoin, while others allow you to store multiple coins.

Physical wallets are physical devices that can store cryptocurrency private keys – but as an alternative, you can use wallets located online or in mobile apps, and even written down on paper.

It’s also important to distinguish between hot and cold wallets. Hot wallets are connected to the Internet, while cold wallets are not.

A common misconception about cryptocurrencies is that the private keys they store are for. The information stored in them simply allows the user to access their blockchain assets. Thus, it can be compared to the PIN code you enter to log into a bank account.

As you might guess, desktop wallets are often installed on PCs and Macs, while mobile wallets pave the way for cryptocurrency transactions on the go. Hardware wallets are often considered the most secure and least susceptible to virus attacks.

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