What is a cryptocurrency wallet?

A cryptocurrency wallet connects you to the blockchain 🔗. It does not store crypto. Rather, it holds the keys to access your digital assets out there on the chain.

Types of cryptocurrency wallets 🌐

There are three main types:

1. Software wallets - Convenient, with variable security
2. Hardware wallets - Super secure. Perfect for storing a lot.
3. Paper wallets - Almost no one uses them anymore. It seems they are a thing of the past.

They are available online and offline. It depends on whether they connect to the internet or not.

This is how it works 🛠️

They generate two keys:

• Public key: Your address to receive
• Private Key: Your master key

Your private key is sacred. Never share it. With it, you can recover everything from any device. Your cryptos are always on the blockchain, not exactly "inside" the wallet.

Software Wallets 💻

Web

You use them from the browser. Some save your keys. Risky. It seems to me that the phrase "not your keys, not your coins" 🔑 makes a lot of sense here. Better to look for those that let you control your own keys.

Desktop

You install them on your computer. They save a "wallet.dat" file with your keys. Protect it with a password. Make backups. Seriously.

Mobiles 📱

Apps for your phone. Convenient. Scan QR codes to pay. Encrypt your app with a password. Your phone can break or get lost.

Hardware Wallets 🔒

They are physical devices. They generate keys offline. The safest ones, without a doubt. Good for storing a lot of money for a long time. They require a PIN and give you recovery phrases.

Backups ⚠️

Losing access = losing funds. Forever.

• Keep backups of the wallet.dat
• Write down your mnemonic phrases
• Don't forget your passwords

Which one to choose? 🤔

It depends on you:

• Do you trade a lot? Online wallets with 2FA.
• Do you hold long-term? Hardware, no doubt. They protect you from hackers and phishing 🛡️

Wallets are the heart of the crypto world. Knowing them well will help you protect what you have. It's not entirely clear for many how to choose, but now you know the basics. 🚀