What is a crypto wallet?

2022/12/10 22:33

What is a crypto wallet, and how do I use it? Crypto wallets store your cryptocurrencies securely outside centralized exchanges or make it easier for you to use decentralized applications (apps).

What is a crypto wallet?

Crypto wallets allow you to store, send, and receive digital assets such as cryptocurrencies Ethereum and Bitcoin, digital collectibles NFTs, which are a bit like the credit cards we usually use.

Basic concepts

Address: It is the “encrypted bank card number”, and others can transfer money to you through your address.

Private key: In the blockchain/web3 world, if you want to call an asset at an address, you need a credential, that is, a private key. It can be understood as the password of your bank card.

Public key: generated by the private key, paired with the public key

Mnemonic: Composed of 12 English words, it is a figurative expression of the private key, because the private key is actually a complex string that is difficult for users to remember.

Two types of wallets

Hot wallet: Connecting to the internet allows you to make decentralized applications (login to decentralized applications requires a wallet signature, just like Web2 login to each website requires logging into your own account) while making it easier to use your cryptocurrency. For example, Metalmark.

Cold wallets: Not connected to the internet, which makes them safer but less convenient.

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