What is a Crypto Wallet?

A Crypto Wallet is an app that enables cryptocurrency or altcoin users to store and access their digital assets.

Unlike physical wallet in day-to-day terms, you don't need it to spend your cash, but it only helps to keep it in one place. 

For Instance, when a user receives cryptocurrency, such as Ethereum, he can store it in a crypto-wallet and from there, do all transactions he wants.

Crypto Wallet Deeper Explanations.

A cryptocurrency wallet is an app that allows users to keep their crypto asset safe and accessible. It also helps store private key, plus allow you to send, receive and spend cryptos like Bitcoin [BTC], Ethereum [ETH], Binance Coin [BNB] etc.

Crypto Wallet store your private keys. What's Private Key? - a private key is a password that gives you access to your cryptocurrencies and also prove your ownership of your digital assets.

The first cryptocurrency wallet was launched by Satoshi Nakamoto in 2009 when he introduced Bitcoin.

Bitcoin is the most widely used cryptocurrency that's based on blockchain technology. Bitcoin and other crypto assets can be hold on multiple wallets in a single application. Each wallet possesses a private keys which allow you to access your assets. And also, each crypto wallets possesses a unique cryptography [wallet address].

What is a Cryptography? - This is also known as crypto-wallet address. It is used to receive cryptocurrency from your sender. When sender direct tokens to the wallet address, it may take 10 to 15 minutes before it appear on your wallet.

Crypto Wallet comes in different forms, but two types will be mentioned in this article.

Also Read - How to Make NFTs and Make Money Online

Cold wallet also known as Hardware wallet or Ledger wallet - it looks like USB stick. And hot wallet are cryptocurrency wallet which can be accessed via mobile apps, web and desktop app. Such wallet is Binance wallet. 

The Cold wallet cost between $100 to $200, and it's not connected to the internet which gives it less suseptible to hackers.

Unlike Hot wallet which can be accessed using private keys on the internet. Finance companies offers this type of wallet ]Mobile app wallet, web wallet and desktop app wallet] for free. Binance is a good example of Fintech company that offer hot wallets for free.

Important Features of Cryptocurrency Wallets.

1. Management

By using crypto wallet such as Binance's, you will be able to manage your assets (such as Bitcoin, Ethereum, Binance Tokens) in one secure place.

2. Interaction

Using username rather than long and hexadecimal Public key addresses. Binance is a good company to get a unique crypto wallet username.

3. Controllable

With private keys, you will be able to control all your assets in on app easily.

4. Send and Receive

You will be able to send and receive crypto coin anywhere in the world seamlessly.

5. Spend

You will able to use cryptocurrency to shop at any online or offline retail store that accept Bitcoin as one of the means of payment.

6. Decentralization

Bitcoin or other coins transactions are decentralized. That's they're untraceable. They don't have any central organization that monitors the data. Unlike central banks that knows the movement of money from bank to bank.

Conclusion

A crypto wallet is a feature provided by Fintech companies (such as Binance) that is used to store assets like Bitcoin, Ethereum, Binance Tokens etc. It's accessed by using a private keys.

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