What is a Crypto Wallet and How Does it work?

Getting into the cryptocurrency playing field can be a handful. At first. But once you get a grasp on the whole concept of virtual money the rest is easy. There are a few steps you need to undergo in order to use crypto as a payment preference. One of which is having a crypto wallet. In this article we will uncover what is a crypto wallet and how it works. 

In short, crypto wallets are commonly used as a storage space for sending and receiving cryptocurrency coins. You can top-up your wallet by buying bitcoin with a credit card (no verification needed) and spend it using crypto addresses or keys. 

Crypto wallets can come in all shapes and sizes depending on your chosen platform. The most user-friendly wallets are presented as mobile apps, offering easy operational systems for a no hassle sending and receiving experience. However, you can also access certain wallets through your PC or even keep your access keys and addresses stored offline (for that extra bit of security). 

When choosing a crypto wallet the first thing you want to do is determine whether you want to keep a hot or cold wallet. Hot wallets are those wallets that are connected to the web (using an app or accessing it through a website). Cold wallets are wallets that are kept offline (hardware devices), commonly using the term cold storage. 

These are some of the most popular hot wallets on the market. Once you have decided on a wallet provider you can start using it. 

If you bought your first bitcoins or any other cryptocurrency (be sure your wallet supports it) from a reliable crypto platform then you should be able to easily add your wallet and receive the top-up. Sending and receiving crypto is achieved by using addresses or keys. To send someone a certain amount of crypto all you need to do is open up your wallet, enter the recipient’s public address and choose your desired sum. Receiving crypto is similar. All you need to do is provide the person with your public address and wait for the transaction. 

However. Using crypto wallets can be tricky in some parts of the world. For instance, it is against the law to provide payments in crypto in Bangladesh, Macedonia and Vietnam. 

Using a crypto wallet is way more simple then it may seem, and best of all… You can’t lose it! 

Dominic Thompson: Guest Blogging and Digital Media Publishing
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