I’m sure you have a little idea about wallets. Indeed, there must be one in your left (or right) pocket right now. A small, flat case in which you carry such personal items as cash, credit cards, IDs etc. But what about a crypto wallet? Because I’m pretty sure you can’t put altcoins in your leather wallet…
An altcoin wallet is the first stop of your cryptocurrency adventure. Indeed, without a wallet, you can’t even buy altcoins. So you definitely need one.
A cryptocurrency wallet is a software that stores your private and public keys. And it interacts with blockchain to enable you to send and receive digital currencies and monitor your balance.
So a multi-coin wallet is your personal interface to the altcoin network. Pretty similar to how your online bank account is the interface to your regular money.
Digital currencies are different from what you know and use every day. Therefore you must learn the basics and make sure your wallet is secured. Also, you should adopt good practices to protect your money.
Unlike your bank account, your crypto wallet doesn’t store currency (bitcoins, ethereum, litecoin etc.). Because cryptocurrencies don’t get stored in any single location. Nor do they exist anywhere in any physical form. Instead, your altcoin wallet contains your public and private keys that give you access to the coins that belong to you.
When someone sends you cryptocoins, they actually transfer ownership of the coins to your wallet’s address. To complete the transaction, the private key stored in your wallet must match the public address the currency is assigned to. And if public and private keys match, your balance will increase, while the sender’s will decrease accordingly.
There is no actual exchange of real coins. The only things that exist are the records of transactions stored on the blockchain.
Three types of wallets exist. And they all offer their own advantages and drawbacks. In this paragraph, I’ll not tell you how to choose the best wallet. But I’ll introduce a different kind of wallets.