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,
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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.
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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. 😎
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. 😎
Altcoins
Bitcoin
Crypto terms
crypto wallet
Decentralize
Digital Wallet
Money
Private Key
Public Key
Terminology
Virtual Currencies
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