What is a Cryptocurrency Wallet?
A cryptocurrency wallet according to cryptocurrencyfacts is a secure digital wallet used to store, send, and receive digital currencies. Cryptocurrency wallet is typically a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance.
Types of cryptocurrency wallet
Cryptocurrency wallet can be categorized based on
This can also be classified into
- Desktop Cryptocurrency wallet; This is the most common type of wallet. They are programs that store and manage the private key for your cryptocurrency in your PC memory. The wallets are downloaded and installed on a PC, they can only be accessed from the PC in which they were downloaded. They are considered as the most secured type of wallet but their main disadvantage is that if the computer is hacked or contact virus, you stand a high chance of losing all your cryptocurrencies. So, this type of cryptocurrency wallet requires carefulness of the computer and maximum security to prevent hackers from hacking the computer and also preventing as much as possible the computer from contacting virus. Examples of desktop crypto currency wallets include; Exodus, mSIGNA, Copay, MultiBit HD, Bitcoin Core, Green Address, Electrum, Etherwall, Mist
- Mobile; A mobile wallet is simply a wallet that runs on smart phone app. The smart phone could be either android, iPhones or any other operating system. These wallets run on an app on your phone, they are often considered better due to their convenience and size. They can be use in both retail stores and malls. They often don’t consume much space due to the limited size of most phones. Examples of mobile cryptocurrecy wallets includes; Coinomi, Ethos, Infinito, Copay, Bread Wallet, Edge, Jaxx
- Online : This type of wallet run on cloud and can be accessed from any device in any part of the globe. This type of crypto wallet though its considered to be the most convenience, it is important to know that is one of the most if not the most vulnerable type of cryptocurrency wallets as it could easily be hacked by hackers since the third party control the private key which is stored online.
hardware cryptocurrency wallets are just like the normal bank where people can make transaction online but the currency is stored offline in the bank house. In hardware cryptocurrency wallet, specially dedicated devices such as the USB are made specially to store cryptocurrency in them offline.
To use a hardware cryptocurrency wallet to trade all you need to do is to plug it into an internet enabled computer or desktop, enter your pin, send or receive your cryptocurrency online. In other words, a hardware cryptocurrency wallet is a device that could be used to trade cryptocurrency online while the coin is stored offline making it more secured.
Paper cryptocurrency wallet is a typical means of storing cryptocurrency in a QR codes which will encode both a public and private key. The use of QR codes allow you both send and receive cryptocurrency. And this option makes it possible to avoid storing of digital data about your cryptocurrency.
Steps on how to get a cryptocurrency wallet
The following are steps on how to get or create your own cryptocurrency wallet. In this case we are going to Bitcoin and Ethereum as our case study;
- Go to play store for android, apple store for iPhone or your desktop online store.
- Search for any cryptocurrency wallet of your choice.
- Click on install or buy as the case may be
- After installation, open the App
- Select create account
- Input a very strong but easy to remember password and then create account.
we are going to create an Ethereum wallet using web browser method instead of downloading the app.
- Firstly, open your desktop or mobile browser
- Login into the url https://www.myetherwallet.com/
- On the main menu of the site, select new wallet
- Fill up the information that will be required on the field provided,
- Input a strong but memorable password
- Click on Create New Wallet
- Download your keystore or json file and store it appropriately.
- The last but not the least, you will be lead to your private key, download and store it appropriately just like other passwords.
After the successful completion of the steps above, still visit the website https://www.myetherwallet.com/. Click the Send Ether & Tokens icon on the Main Menu. Use your private key to log in and you are good to go.