A software program which is used to store your private and public keys, allows you to send and receive digital coins and also act as a personal ledger of cryptocurrency transactions you make. For example, if you want to use Bitcoin or any other cryptocurrency, you will need to first have a digital wallet.
What is the process?
There is a lack of knowledge among the users of cryptocurrencies about how the wallets work? Unlike the traditional pocket wallets, these digital wallets do not store any currency. The money is not stored in any location or exists anywhere in a physical form. Instead the records of transactions are stored on the blockchain which exist in wallets.
These wallets can help you to monitor your balance, send money and conduct other available operations on the cryptocurrency you use. Typically when a person sends you any cryptocurrency, he/she signs off an ownership of coins to the address of your wallet. There is no actual exchange of coins. The significance of transaction lies on the fact that a transaction recorded on the blockchain and a balance change in your cryptocurrency wallet.
Different types of cryptocurrency wallets
Desktop– These are wallets which are installed on your PC or laptop. They can be accessed only from the computer in which they were installed.
Online– These types of wallets are stored and run on cloud platform. They are accessible from any location and are controlled by a third party.
Mobile– These are wallets which run as an app on your phone. These are useful as they can be used from anywhere including retail stores.
Hardware– These are wallets which are actually hardware devices on which user’s private keys are stored like a USB.
Paper wallets– paper wallet refers to a physical copy of a user’s public and private keys.
Go the sub-menu to read the reviews of the most popular cryptocurrency wallets available online.