Random Blog on Crypto (Part 84) : Crypto Wallets and their working principles

engrsayful (80)modCOMMUNITY MODin Tron Fan Club • 2 days ago

A crypto wallet is a place where you keep your digital coin. In traditional financial world, we need wallet to store out assets. Same as crypto wallets are for storing crypto or digital assets. This wallet is digital and the assets are completely digital. It is not same as normal wallet. It don’t hold real cash or notes. It store two keys. One is private key, other is public key. These keys help to send and receive crypto. Private key is like your secret password. It let you use the coin in wallet. You need to keep this key safe. Public key is like your address. You can give it to someone. Then they can send crypto to you. When you get coin, it come to your public address. Private key help to open the wallet and move the coin. If someone gets your private key, they can steal all crypto. That’s why you never should share it with anyone. These are the common features of crypto wallets. Now let get idea about their types and working principles.

There are many wallet types. Two main kind are hot wallet and cold wallet. Hot wallet work with internet. It is phone app or software. It easy to use but less safe. Hacker can try to attack them. Cold wallet is offline. It do not use internet. It is hardware device or paper. These are more safe but slow to use. Hardware wallet look like small USB stick. You connect it when needed. Paper wallet is paper with codes. It can’t be hacked online. Many people use both wallet types. Hot wallet for daily use. Cold wallet for saving big amount. Big amount should be stored in Cold wallet because online security systems are not out risks. Some wallets only work with one coin. Other can hold many coins. Some wallet give backup choice too. You can get back wallet if phone lost. Wallets don’t hold coins itself. They only store keys. Coin always stay on blockchain. Wallet help you to use blockchain. That’s how crypto wallet really works. This is the way of working of crypto wallets. I hope you have got basic idea of its types and principles. Thanks.