Автор: Artem от 11-12-2021 | Категория: Статьи о дизайне

A cryptocurrency wallet is a program that securely stores your public and private keys. It is these key pairs or secure digital codes that are used by your wallet to interact with the blockchain so that you can see your balance, as well as send and receive cryptocurrencies. You can imagine your wallet as a bank branch or ATM on the spot, which gives you access to your funds stored in the bank or - in the case of cryptocurrencies - in the blockchain, for more information, look at is jaxx wallet safe.

 

Remember that the blockchain is a public registry with a high degree of protection, in which all transactions with cryptocurrency are recorded. For those who are not familiar with this, it should be said that crypto wallets do not contain physical coins, since cryptocurrency coins are digital.

 

To better understand this, here is another example. This time we are comparing the crypto wallet with what you probably use daily: your email.

Your wallet is like an email account for your cryptocurrency; they report your email address, but not your password. Your public keys are similar to your email address, and your private keys are similar to the password you use to log in to your email. They give out your wallet address so that others can send you coins, just like your contacts are given an email address to send you messages.

 

However, when it comes to security, you will never give your email account password to anyone. Also, to keep your coins safe in your cryptocurrency wallet, never give out private keys (or password/passphrase) for your cryptocurrency wallets.

 

HOW DO CRYPTOCURRENCY WALLETS WORK?

Your cryptocurrency wallet connects you to the world of digital currency, namely blockchains. It allows you to interact with this ledger that records all crypto transactions and gives you access to your digital currency.

 

Whether it's a Bitcoin wallet, an Ethereum wallet, or a regular wallet, all crypto wallets work on the same principles using tools called keys. But just as there are no physical wallets to carry with you, there are no physical keys to carry with you.

Each digital storage method has a public address, a public key, and a private key. In the truest sense of the word, these are the keys to protecting and processing your cryptocurrencies on the Internet.

 

WHAT IS A PUBLIC ADDRESS?

A public address is an external identifier of your cryptocurrency wallet. This is the destination of the digital currencies that you are buying ownership of. When you buy a cryptocurrency, the seller sends proof of ownership to your public address. As a rule, you enter your public address for transactions, similar to how you enter your routing number and account details for a traditional money transfer in a bank.

 

WHAT IS A PUBLIC KEY?

The public key is similar to your public address, but not exactly the same. It confirms that you are the owner of a public address that you can use to send and receive cryptocurrencies.

A public key is a random combination of letters and numbers. An example of a public key could be: 0x286717D6E417A7801d0ecED32d8b7Ff2241078d6 .

 

Public keys are compared with the private key of a crypto wallet, but, unlike ordinary banking data, these keys do not provide any information about the owner of the wallet.

 

WHAT IS A PRIVATE KEY?

The private key acts as a kind of password for cryptocurrency wallets. It is inward-facing and allows users to access their cryptocurrency wallet to buy, sell and control their digital currency. Again, think of it as a password for your email account. This is the central element of the security of your cryptocurrency.

 

WHAT TYPES OF CRYPTO WALLETS EXIST?

There are many different crypto wallets. What is best for you depends on your general trading habits, and which one provides the most security in your situation.

There are two main types of wallets: hot-storage wallets (digital) and cold or hardware wallets (physical). Both have their pros and cons, and there's not necessarily one right or wrong answer when it comes to determining which crypto wallet is best for you.

 




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