WHAT IS A DIGITAL WALLET FOR CRYPTOCURRENCY? WHAT IS BLOCKCHAIN WALLET?

HoldingB’s article will help you understand the definition of a cryptocurrency wallet, what is a blockchain wallet ?!

I-What is a cryptocurrency wallet?

A cryptocurrency wallet is an app that allows cryptocurrency users to store and retrieve their digital assets. As with conventional currency, you don’t need a wallet to spend your cash, but it certainly helps to keep it all in one place. When a user acquires cryptocurrency, such as bitcoins, she can store it in a cryptocurrency wallet and from there use it to make transactions.

In the Crypto Market, A cryptocurrency wallet is software that helps to store, send, receive and track the balance of cryptocurrencies like coins/tokens inside it.

Deeper definition

In the Crypto Market, A cryptocurrency wallet is software that helps to store, send, receive and track the balance of cryptocurrencies like coins/tokens inside it. How does a crypto wallet work?

The coins exist on a blockchain and the wallet software allows you to interact with the balances held on that blockchain. The wallet itself stores addresses and allows its owners to move coins elsewhere while also letting others see the balance held at any given address.

II-Does money grow in a crypto wallet?

Nope your money can not increase it can only be the same Wherever you store your bitcoin it will be worth the same. If you have 1 bitcoin on an exchange and the current price is $15k then that’s what it’s worth. If you have 1 bitcoin in a private wallet, well it’s still 1 bitcoin so worth $15k.

III-The composition of the Cryptocurrency Wallet

When creating a cryptocurrency wallet, you are provided with 3 codes, corresponding to 3 components: Address, Private Key, Passphrase

Address – Wallet address :

Address (wallet address, also known as Public Key) is a random string of alphanumeric characters. A wallet address is like a bank account number, when someone sends cryptocurrency to your wallet, they will send it to this wallet address.

Private Key – Private Key :

A private key (also known as a private key) is also a random string of alphanumeric characters to connect to the wallet and is Considered as a password to log in

Taking note:

Protect and do not reveal your private key to anyone, it is recommended to write it down on paper and keep it in a safe place.

Losing the Private Key is considered a permanent loss of money.

Passphrase :

A passphrase is also a form of the private key, consisting of 12 or 24 random English words, but depending on the decryption mechanism in different wallets, the passphrase will give different wallet addresses.

IV-What is Blockchain Wallet?

A blockchain wallet is a digital wallet that allows users to store and manage their Bitcoin, Ether, and other cryptocurrencies. Blockchain Wallet can also refer to the wallet service provided by Blockchain, a software company founded by Peter Smith and Nicolas Cary. A blockchain wallet allows transfers in cryptocurrencies and the ability to convert them back into a user’s local currency.

E-wallets allow individuals to store cryptocurrencies and other digital assets. In the case of Blockchain Wallet, users can manage their balances of various cryptocurrencies such as the well-known Bitcoin and Ether as well as stellar, Tether, and Paxos Standard.

V-How does a Blockchain wallet work?

Blockchain wallets follow a similar process using a public key and a private key together. A public key is similar to your email address; you can give it to anyone. When your wallet is generated, a public key is generated, and you can share the public key with anyone to receive funds

Blockchain wallet pros and cons

PROS

A “security system consisting of multiple shields” is built every step of the way. So it’s easy for you to do to protect your account. The platform always has backup investment funds and prevents unauthorized access.
Blockchain wallet-friendly relations with trusted exchanges. This makes it quicker and easier for you to trade cryptocurrencies directly from your Blockchain wallet.
This system also adjusts transaction fees in line with market demand
Blockchain wallet is available on platforms such as iOS, Android, and Web

CONS

Blockchain wallet platform web is still a bit slow, when you log in your computer will freeze for about 2-3 seconds.
The virtual currency that Blockchain supports is quite small, so it does not meet all the requirements of cryptocurrency Investor

See ya in the next article !

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