WHAT IS A CRYPTO WALLET?
Cryptocurrency wallets are a little bit like email addresses. They’re not as well known or understood as they should be, but once you get the hang of them, they’ll be one of your most important tools for managing and protecting your cryptocurrency investments. Cryptocurrency wallets are designed to help users send and receive money using digital currency such as Bitcoin or Ethereum. A cryptocurrency wallet lets you manage multiple addresses for different types of cryptocurrencies, along with their associated public keys (or “addresses”) and private keys (or “keys”).
A cryptocurrency wallet is a collection of private and public keys that enable users to receive or spend cryptocurrency. It is often referred to as a digital wallet, but it can be in any other form that allows you to access your funds.
A cryptocurrency wallet is like an online bank account for money that you have stored on the blockchain (a decentralized database). This means that instead of having access to your money when you want, it will be locked up until the owner gives permission for them to send it out into their own control again.
The easiest way to think of your cryptocurrency wallet is like an email address, which you can use to send money to someone else. The difference is that the email address is used directly by the person who has it (or their bank account) and doesn’t need an intermediary such as PayPal (American Express) or Western Union (only for international transactions), whereas your cryptocurrency wallet requires a third-party like Coinbase, Bitpay or some other trusted company because it stores your private key which is then used to authorize transactions on your behalf.
When you want to send someone funds using this type of service, they will give you their public key so that they can receive funds from their own personal wallet in exchange for sending theirs over via yours instead–thereby reducing fees associated with transferring fiat currency between addresses and making things more convenient overall!
However, even when using a third party service like Coinbase or Bitpay the user still needs two keys: one public and one private. The first one is called the public key because it’s available to anyone who wants it without any authentication from you (you don’t need any kind of ID proof or special permissions with this key). However, only people who know your private key can log into your account on websites such as Bitcoin.com or Circle and start making purchases with their coins!
You can use this feature to prove ownership of your coins by signing a message with your private key which then gets sent back to whoever wants to verify that they own some Bitcoins in their wallet (or vice versa). If someone tries to spend those coins without having access to both keys, then they won’t be able to prove ownership so there would be no way for them ever get paid back what they spent unless other people provide proof that they own these particular bitcoins themselves (by signing another message using their own private keys).
All in all, a cryptocurrency wallet is basically just like a bank account. It allows you to store your cryptocurrency and it gives you access to your funds from any device with an internet connection. The difference is: with a cryptocurrency wallet you do not have access to all of your funds at once because they’re stored on an external server, so there’s always some risk involved when using such tools. However, if this worries you too much then maybe it’s better leaving this type of storage out altogether instead of trying it out just once!