Cryptocurrency digital coin wallets are computer programs that store digital keys. Crypto wallets access blockchain records and allow users to receive and send digital money.
Crypto wallets don’t actually store cryptocurrency, but they allow secure access to the blockchain and to the records of your unique transactions.
In a moment I’m going to show you what we think is the best crypto wallet on the market.
But first let’s look at more things you need to know about crypto wallets.
All crypto wallets have keys.
A public key for receiving funds. This key identifies your wallet online.
A private key is used to verify that you own your public key. You use it to digitally authorize transactions.
There are 5 kinds of cryptocurrency wallets:
Online wallets are accessed on the cloud.
This makes them very convenient, but also vulnerable to theft.
Mobile wallets are phone apps.
You can even use it to pay for things in physical stores.
Mobile wallets are generally safer than cloud wallets.
The biggest risks are losing your funds if your phone fails or is hacked.
Desktop wallets are also more secure than online wallets.
But your computer is susceptible to being hacked or infected with a virus, or to hardware damage. Hardware wallets are physical devices that store users’ private keys. They can be usb drives or dedicated devices.
When not in use they’re offline, which makes them more secure.
Paper wallets are the safest choice overall for accessing your cryptocurrency assets.
They may also include QR codes.
Send funds by moving your money to your wallet’s public address. Then enter your private key to withdraw the funds or scan your QR code.
If you have a hot wallet, that means it’s connected to the internet. Online and desktop wallets are hot by default.
Cold wallets don’t have an internet connection until you access them. When your cryptocurrency is in “cold storage” it is safe from online hacking and theft.
But, why not just keep your cryptocurrency balance in an Exchange?
Exchanges can be hacked, closed or even disappear.
Most cryptocurrency exchanges are not legally required to compensate their account holders for losses.
The best crypto wallet on the market?
Ledger Nano X connects via usb with desktop and mobile and has a built-in battery.
It has 2 chips to make sure your private keys are never visible to prying eyes.
Ledger Nano X lets you store over 100 cryptocurrencies. You can also use it to login to many exchanges.
In the next video we’ll look at cryptocurrency scams to beware of.
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