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Some rich inside features of a cryptocurrency wallet

Cryptocurrency wallet plays a big role in crypto trading.  Without a wallet, the user cannot send or receive digital assets. 

A Multi cryptocurrency wallet is a base for users when investing in cryptocurrencies. This is because it represents a bank account in the case of fiat currencies. Simply put, a crypto wallet permits its users to send, receive, and store digital assets. 

Generally, wallets are made up of secret codes and private keys that yield the holders the ability to access and spend cryptocurrencies that are held in the wallet. 

It is necessary that the user needs to keep safe the secret codes and the private keys. This is because these keys grant you access to your digital assets. 

How does a blockchain-based wallet work?

It is believed that the digital wallet is a device used for storing cryptocurrencies. However, crypto coins do not exist in physical form, and all crypto wallets do is record the transactions and store them on the blockchain.

A cryptocurrency wallet is a software program that enables users to access the private and public keys. Every crypto wallet has a unique address, which is known as a wallet address or a public key. There is no harm in sharing the wallet address with anyone. The person who wants to transfer cryptocurrencies to your wallet will use your wallet address to make a transaction. 

Another digital key with a hexadecimal code known as the private key is not meant to be shared with anyone. The private key is similar to your bank account’s password or PIN number. 

Essential features that need to be considered in developing a cryptocurrency wallet

Simple interface

The crypto wallet should have an easy and simple interface so that even a layperson can understand the operations of the wallet.

Exchangeable currencies

It is necessary that a wallet should support crypto-fiat transactions. It should provide the user with a convenient way of exchanging currencies. 

Secure money

A crypto wallet should have a strong and complex password that provides high security to protect crypto assets. In addition, two-factor authentication acts as another layer to keep your wallet secure. 

Multiple currency support

Nowadays, users are interested in holding multiple currencies in a single wallet. This makes it easier to switch between currencies.

Conclusion

In the cryptocurrency space, the user should prioritize security before anything else. Some of the other factors one  should look out while deciding on a wallet are the transaction fee structure, the privacy, and security provisions. To get a secure crypto wallet, partner with a reliable cryptocurrency wallet development company.

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Written by katrinkunze

Even though its hard corona time that hinders your progress, you can break the walls by diving into the crypto space!
Cryptocurrency Wallet is the undeniable application you must utilize every day when you are into the crypto world. Either you hold small amounts of ETH, BTC, LTH, or custom cryptocurrency, you need a crypto wallet to store and perform transactions with your digital assets. Professionals seek advice from experts on  cryptocurrency wallet development Services with customized features than utilizing pre-built software. Customized crypto wallets are believed to be safer than exchange or any third-party hosted wallets!
Now, in this blog, let’s grab knowledge on the cryptocurrency wallet and its types! You can kick-start with the favorite choice of the crypto wallet!

What is a cryptocurrency wallet?
A cryptocurrency wallet is a software application that helps users to store, send, receive, or monitor the crypto transactions. The wallet users are provided with two significant keys: Public and Private Keys. Users are prompted for private keys to authorize the crypto wallet and perform transactions. Hence, it’s solely crypto wallet user’s responsibility to maintain their private keys safe and secure. I.e., Just like your credit or debit card PINs!
You may wonder where these cryptocurrencies are stored and how the transactions process at the backend! Here’s how cryptocurrency wallet works!

How does a Cryptocurrency wallet work?
Crypto wallets possess public and private keys. No one can view or steal the cryptocurrencies from your wallet until they have access to your crypto application.
When the cryptocurrency is transferred from your wallet, you’re officially signing off the ownership of coins to the receiver’s public address of the wallet. The receiver can access the transferred crypto coins by authorizing the private keys that match the public address of the currency stored in the blockchain network. In general, every cryptocurrency transaction is stored in the blockchain network, just the ownership transfer of coins take place virtually.
You can now explore the types of cryptocurrency wallets that are available in the market!

Types of cryptocurrency wallets
Cryptocurrency wallets are majorly categorized into three types.

Software Wallets,
Hardware Wallets,
Paper Wallets.

Software wallets are sub-categorized as desktop, mobile, and web wallets. Here you go with the brief onsets of crypto wallet types!

Software Wallets
Desktop Wallet
The desktop wallet provides immense security than other software crypto wallets. The cryptocurrency wallet application of desktop type can be installed and authorized only through a PC or laptop. Desktop wallets are considered as a kind of cold storage that secures your crypto assets from potential hacks. You can access the cryptocurrencies in the desktop wallet through internet connection whenever necessary, and for the rest of the period, it can be safeguarded from prying eyes.
However, you need to have a backup plan for desktop wallets as they are vulnerable to virus attacks, electrical short circuits, and other natural calamities.

Web Wallets
The web wallet applications are accessible from anywhere on any device with your public and private keys. Exchange wallets are web crypto wallets that store user’s private keys on a hosting server. However, when you’re picking up the exchange wallets, you’re vulnerable to hacks.

Mobile Wallets
Mobile crypto wallets are the most prominent type that is served on the crypto space. Crypto owners hold a minimum of their crypto coins in mobile wallets for easy accessibility and transfers of assets. They have the feature of a QR scan and pay for purchasing products from shops, e-commerce sites, and other places. Even though mobile wallets are considered vulnerable, crypto owners store a small number of distinct crypto coins for quick transactions and the rest of their digital assets in cold storage.

Hardware Wallets
Hardware wallets work differently from software crypto wallets. The user’s private keys are stored in the hardware devices securely without any vulnerabilities. The user connects their hardware wallet with internet-connected devices to authorize and perform transactions in their wallet. These kinds of crypto wallets store the coins in offline mode, making it free from prying eyes.

Paper Wallets
Paper cryptocurrency wallets are physical prints of public and private keys of wallet. A paper wallet generates a pair of keys that help to access your crypto coins. However, to create a paper wallet, you must authorize a software wallet and transfer the control to the paper type by entering the public address provided. For the withdrawal of crypto assets, you must perform the operations vice versa. I.e., Paper wallet to software wallet.
The process of withdrawal of crypto coins from the paper wallets is addressed as sweeping and is processed by scanning the QR Code or authorizing it through private keys.

Final Thoughts
You would have selected the cryptocurrency wallet of your choice by now!
A pro tip for you: Always pick a software wallet and a cold storage wallet. Hold a minimal number of crypto coins in the software wallet and the rest in cold storage. Software wallets help you with easy accessibility, whereas cold wallets serve you with immense security!You are just loaded with the onset of the cryptocurrency wallet. To know more about the mandate and advanced features of the cryptocurrency wallet, do stick with us!

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