What is a Wallet?
Simply, a wallet is where you can save or keep your money, for making purchases on the Internet. Probably, one of the most well-known wallet providers is Paypal.
In terms of cryptocurrency, the subject is slightly more complicated. No matter which cryptocurrency you choose, you always need a place to store it.
Most cryptocurrencies offer this software, usually as a direct download from the respective currency provider. You then install the software on your PC, Macbook, smartphone or tablet.
Additionally, some third-party solutions can accommodate multiple cryptocurrencies. An example would be Exodus. For even greater security, you can also buy a hardware ledger wallets. These are mostly small pen drives or USB sticks which connect to your computer.
The advantage is that since the hardware communicates directly with the blockchain of the cryptocurrency, the whole chain is secure. Even if a hacker infiltrated the computer in an attempt to steal the digital money, the contents of the wallet would be safe.
How to Use the Wallet
After the download, the user registers and connects his or her wallet with the blockchain of the chosen cryptocurrency. When you use a cryptocurrency, you usually receive two addresses: a public address and a private address.
As the name suggests, the private address is only designated to one person and should not be shared or allocated to anyone else. In contrast, the public address can be passed on freely, because that is the address to which the system sends transactions.
Coin-Report.net was founded by Thomas Mücke.
With the help of Coin-Report.net magazine, he tries to bring light to the field of crypto-currency.