What are cryptocurrency wallets?
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In the same way that we have a wallet for our cash, we need a wallet for our crypto assets! Let’s find out more about this core infrastructure of the cryptocurrency world.
A cryptocurrency wallet unlike our traditional wallets does not hold the crypto-assets themselves, but rather the keys that prove our ownership of them. The currency is actually stored on the blockchain!
How does it work?
The wallet holds your public key which is like your account number, you give this one to people so they can deposit cryptocurrency onto your wallet, and the private key, you use this one when you want to spend your crypto and you don’t show it to anyone, hence the “private” part. The private key is also the core key from which the public key is derived. So keeping these safe is of the most vital importance!
There are different types of wallets, you can just simply write down your private and public keys on a piece of paper in what is called a paper wallet, this will make interacting with the wider crypto-space harder since it’s completely detached from the digital world, then you have what is called a cold wallet, this is usually a piece of hardware resembling a USB stick that has your keys on it, you can use this one if you plan on holding you crypto assets for a longer time, since it’s not connected to the internet it is called a cold wallet! The Hot wallet or software wallet is a wallet that is online and ready at any time to complete transactions, people who need to do transactions all the time like traders for example use these.
When it comes to choosing the right wallet for yourself make sure that you do the proper research so you can be sure that you have a wallet that is suited for your needs, and if all else fail we at LIQUIDUS (LIQ) have the best platform when it comes to user-friendliness, regardless if you already have a wallet or if you need to create a new one, we got you covered!
Visit us now at
https://www.liquidus.finance so you can check out everything we have to offer and read our litepaper to find out more!
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