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A DIGITAL WORLD’S INVENTION: DIGITAL WALLET




Nowadays, digitalization has ruled the markets. Every single person is somehow connected to Digital Platforms. Everyone is connected to the internet world, whether it is Social, Economic, Banking or any other sectors. We all use several gadgets which gives us access to the digital world. So, peoples are turning Digital from Traditional. All are evolving to adopt future technologies and techniques. Improvisation will only help everyone to stay connected with each other. Since, today we’re up to discuss about “DIGITAL WALLETS’, and its necessity for Cryptocurrency, so we shall begin it by understanding ‘The Wallets’.

I know, you all are curious to know about it!

So,

Here we go.

When I say WALLET, the first image comes in our mind is our Pocket wallet/Purse.

RIGHT !

That's a perfect visualization!

But in a traditional way.

The wallet which we all keep with us by protecting it and preserving safely so that it couldn’t get lost or stolen is a Traditional Wallet. We all use it to keep Money, Receipts, Bills, Visiting Cards (VCs), etc.

But the digital wallet is totally opposite of it.
Digital wallets are those wallets which can only run on Internet and can be used to store money in digital form. Some examples are - Online Wallets, Applications, Software, Dapps, etc. Similarly, in Cryptocurrency World we have ‘DIGITAL CRYPTO WALLETS”.


Let us understand it with an example.


Just imagine!

You have an account in bank. They provide you with a Unique Account Number. So, whenever you need money you just provide that account number to the person who is sending it. Right!
Here, the account number you provided him is a PUBLIC KEY (Address).
Now, the person will send money and a notification will pop up on your screen.




The main thing starts from here.
To check money, you use your application digitally. So, you access your application via inputting a PASSWORD. It is nothing but a PRIVATE KEY (Password).  You check the amount and get back to your normal work. Except you, no one can know that how much money do you hold in your wallet.

So simply, you understood the above example. Hurray!

Now let’s see some types of wallets for storing Cryptocurrencies.


As per Internet God there are 5 types of wallets. The first one is,



Ø  ONLINE WALLET


As the name itself indicates, something related to Internet. It is a wallet which is totally operational and accessible through Internet access. Here, you can store your cryptocurrencies easily. Only thing you need is to register yourself with the service providers and login your account into it.
I must admit, this isn’t the safest place where you can keep all your eggs because in recent times many SCAMS and FRAUDS has been reported by users. The providers keep your records on ONLINE CLOUD database. So, whenever there’s any kind of Malicious/ Suspected activities recorded then mostly the Online Wallets are on higher risks. If you have a reputed provider then the chances of getting hacked/scammed is very low.





Ø  MOBILE WALLET


We all have the world’s powerful tool: A Mobile Phone. Every other person is so attached with their mobiles that they look like “MAN’s BEST COMPANION”.

So, considering this mobile wallet have been created for the user who can access their account ON THE GO. The application has limited features as compared to a fully programmed software. Still, it is used widely to send or receive cryptocurrencies. There are number of applications present in the market. Each application has its own distinct features. You can access this app using your PRIVATE KEY.



Ø  DESKTOP WALLET
It is as similar to mobile wallets. In desktop, user have to install a software of Blockchain. This type of software is mostly large in space size and can only be installed for web version only. Their smaller variants are mobile applications. BITCOIN CORE is an example of desktop wallet. The functions are similar for sending/receiving Cryptocurrencies.






Ø  HARDWARE WALLETS

One of the most interesting type which I personally like is Hardware Wallet. It has been proven one the safest form of storing Bitcoins in wallet. The word ‘HARDWARE’ signifies something related to component/part.

That’s Right!

It is a type of external device which has storage capacity to store the data. To understand it easily, 

let’s take an example:

Assume that you have a USB Pen drive and you want to transfer a movie from your other network into it. So, you plug it into a CPU/Laptop and transfer that Movie. Now, the movie is stored in USB pen drive in offline format. This is the safest form because you aren’t connected to internet anymore. Whenever you want, you can enjoy it.





Similarly, hardware wallets work on the same principle but when they are connected to system/laptop, then they get connected to internet to Send/Receive Currencies. Most of the time the wallet is offline and is protected from online scams/hacks. Only drawback is its expensiveness.

“SAFETY ALWAYS COMES WITH A PRICE TAG.”

That’s the reason I like it the most.

What’s your opinion?

Comment below😊



Ø  PAPER WALLETS

Last, but not the least. PAPER WALLET!

It is noted that Paper wallets are the safest type of Cryptocurrency wallet. First of all, it is the least expensive and can be adored by everyone to keep their coins safely and securely. The service is provided by many Crypto service providers. They will create a PUBLIC KEY with QR Code on it. This will help you to directly transact without opening your wallet in public places. This will be very useful when you're travelling or in a situation where you couldn’t access your phone.



I hope this blog will clear all your doubts related to Wallets and types of Cryptocurrency Wallets. 

 Our next blog will be a continuation of this blog. It will be posted tomorrow itself. So, don't miss it. Stay connected with us for more interesting topics. 😎

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