If you would like (and it is unavoidable, of course) to keep the crypto that belongs to you, send and obtain crypto transactions, you need a special software program to fulfill these aims. One of the methods is a crypto wallet. Every crypto wallet will include public and private keys, in general. Public keys are addresses that help to transit crypto to your wallet. Moreover, they are derived from the private ones.
As far as private keys are concerned, they enable people to get access to control the balance on their personal wallets. We can compare private keys with safe deposit boxes. The main difference between them is that having private keys lets people have and become their own bank. Consequently, every crypto wallet is really friendly to customers.
Do you have a favorite word? We do not know about you for sure, but for many people the word ‘wallet’ is one of their favorite words. In addition, of course, not only ‘wallet’ but ‘full wallet’.
How does a Crypto Wallet Work?
Firstly, imagine that you want to retrieve an address from the wallet that belongs to you. In this case, you need to put the feature named ‘generate addresses in the wallet. Then you should click and copy the QR code. Next step is to share it with anybody who is going to send you cryptocurrency.
Secondly, if there is a necessity to send funds, you should act in the following way: find the address of the wallet that will receive crypto. Put the feature ‘send’ in your wallet. Write the address of the necessary wallet. For sure, decide on the amount of money you are going to send and prove it. In order to be safe, have a try and send a small sum. Small fees also exist.
All new steps are unknown for us and sometimes difficult. Nevertheless, the more time you will spend, the easier it will become.
Types of Crypto Wallets
Having analyzed the sphere of crypto wallets, we can speak about two most popular kinds of them: software wallets and hardware wallets.
Software wallets are programs that help people to send and obtain crypto and, doubtlessly, to save them.
Hardware wallets are material objects and they usually are plugged into a computer. In general, such a wallet costs approximately one hundred dollars. They can be like an app created by a company; they also can be like the interface based on the web or it may be just a separate software wallet.
Hot wallet and Cold wallet
Advantages and Disadvantages of Crypto Wallets
Without any doubts, advantages of crypto wallets may include the possibility to send cryptocurrency to all people that you want. It can be done at any time. Decentralized cryptocurrencies are censorship-resistant. It happens due to the reason that the network is not controlled. Consequently, it is difficult to stop any transactions.
Of course, self-ownership is a great advantage of a crypto wallet. In case we have got any private keys, it means that only we are the owners of the crypto. Please, note that money on accounts in banks belongs to banks.
Moreover, we should notice some disadvantages of such wallets: user responsibility and learning curve. The first one means that you have to assume liability of 100% in every case when something goes wrong. The second minus means that using a crypto wallet requires a basic level of computer knowledge. Of course, it is necessary to have a lot of knowledge concerning the financial ecosystem.
By the way, the Venera Swap has its own wallet! Find out more about Venera Wallet