Wallets are essential components of the crypto universe, because without them cryptocurrencies will be another awesome idea that died on arrival.
Think about it, without wallets, normal users like you and I wont be able to do anything meaningful with crypto. Wallet is what helps regular people to access, store, send, receive and track their digital currency holdings whether it’s Bitcoin, Ethereum or even the almighty ICO tokens.
I said regular because there are “tech-gurus” who understand the 1s and the zeros, so they might not mind.
What Exactly Are Cryptocurrency Wallets?
Cryptocurrency wallets or digital wallets as some love to call it, are just like the normal leather pouches, purses and wallets many of us still like to take around, in which we hold money, callcards and ATM cards.
But of course, your leather wallet can’t do what your digital wallet can do ☺. For example, you can’t track the last time you spend money just by looking at your wallet, or how exactly you even spend it. Yeah, your digital wallet keep track of everything.
Yeah, they are quiet smart. As apps, they are much more capable, combining features of your leather wallets and unprecedented features that’s available in the virtual world.
With one wallet, you can hold hundreds of digital currencies, millions of them, without worrying about space. All neatly arranged, marked and tracked.
So it’s nice to get familiarised with how wallets work if you will be using cryptocurrencies soon.
So How Do Wallets Work?
Cryptocurrency wallets work like the safety deposit boxes we use to store our most treasured possessions be they degree certificates, jewelry or a will. None of us can afford to lose the keys to the safety box because we could lose ownership of our valuables if they wind up in the wrong hands, digital wallets work pretty much the same way only instead of physical keys we carefully guard our digital keys.
Commonly known as private keys or master keys, digital keys take form of hexadecimal codes, something like this:
Alright, don’t freak out, at first, it looks confusing, but this code can be written down, memorised, printed out, even converted to barcodes, so no one have an excuse for not backing up their codes…. because without it, you can’t authorise transactions from your wallet.
So never lose them, share them with anyone and always keep them somewhere safe where you can retrieve when necessary.
So How Do I Create One?
Don’t hassle too much, you can find wallets on your web browser. But be sure do due diligence because there are some put there who are only out to take your information and steal from you.
We at Learncoin do not recommend any, although there are safe and recommendable ones out there. Maybe in a future post, I will recommend some of the best wallet services.
For now, once you click on the service you want to use, follow the process, it’s very much self explanatory. If you have an email address you opened by yourself then you can easily open and operate an e-wallet.
There’s a second option, buying an hardware wallet. We will talk about them in the future too.
So, that will be all about that for now. Catch you in the next post.
Don’t forget to comment and share with friends. Let’s learn crypto together.