Wallet is the name given to cryptocurrency wallets. It allows users to store and retrieve their digital assets.

As with traditional currencies, cryptocurrencies also have their own wallets. Digital wallets that store information about the cryptocurrency owned by the user and communicate with the blockchain network during trading transactions. Cryptocurrency wallets are used to store and transact digital assets. Wallet is likened to applications used on computers or mobile phones.

There are many types of wallets. Cryptocurrency wallets are used for storing cryptocurrencies before starting any digital asset trading or investment transaction. It makes it easier to make transactions and allows you to control the balance.

The first of the cryptocurrency wallets was introduced by Satoshi Nakamoto, the creator of Bitcoin, in 2009. Digital wallets or cryptocurrency wallets are composed of private key and public key information. The wallet does not actually store digital money, but data that proves the existence of money.

With the keys used in transfer transactions and every interaction with the blockchain network, the ownership of the money is proven.

The keys that prove the existence of the account are the private and public keys. These keys are connected to each other by special encryption. It is not possible to make transactions with the money in the account without having the private and public keys.

The storage of cryptocurrency wallets takes place by securing the keys. It is very important to store the private key and prevent anyone else from accessing it.

Types of Cryptocurrency Wallets

There are many types of wallets used for storing cryptocurrencies. Custodial Wallets, which also make it possible to store keys, or Non-custodial wallets that do not provide key storage services. Both wallets have options.

Custodial Wallets can be exemplified as Cryptocurrency exchanges and online wallets.

Cryptocurrency exchanges, crypto-traded exchanges, are also in the wallet service for their users. Private keys are kept in the stock exchange database. Here, the confidence given by the preferred stock exchange for trading comes into play. Assets may be exposed to cyber attacks or assets may be put at risk if account information is accessed.

Online (Online) Wallets use cloud storage technology. It can be accessed from anywhere connected to the Internet. It is often preferred because it is easy to use and connected. The private key is stored in online wallets that offer cloud-based services. Because it is connected, it is less resistant to attacks. Making transactions through a service provider that is not trusted carries risks.

Non-custodial wallets, desktop wallets, web wallets, mobile wallets, paper wallets and hardware wallets can be given as examples.

Desktop Wallets are used by downloading from the Internet to a computer. It is easy to install and use. It works only on the installed computer. A virus that will infect a computer may pose a risk to wallet information.

Web Wallets are cryptocurrency wallets that work through browsers. The information belonging to the account is not kept, the key information is stored on the user's side in the internet browser. It is seen as a practical solution. In transactions, the user must enter the private key information and perform the verification process.

Mobile wallets are similar to desktop wallets. The data is stored on mobile devices and makes it possible to make transactions anywhere at any time. It has a small file size.

Paper Wallets are expressed as papers on which certain codes are written. They are not connected to the Internet in any way. This is also why they are not exposed to cyber attacks. On paper, the air address to the wallet contains private and public key information and a QR code. If paper wallets do not have a backup, it is likely that deposits will be lost in case of any loss, rupture, etc.

Hardware Wallets are one of the wallets that offer high-level security services. It looks like portable USB flash drives. It is not connected to the Internet and is not subject to cyber attacks. It provides security with many options. It can be used by plugging into any computer. #originalcontent #wallet #BTC #ETH #Binance