wallet.net
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Wallet.netCryptocurrency Wallets: All You Need to KnowThe first encounter with the crypto wallet thematic caught my attention immediately. It is fascinating how the term is identical and at the same time differs from the one outside the digital world. Back inside, these tools have multiple layers, as well as methods to protect the content they deal with. What is more, the process of sending and receiving is not only your call but a combination of circumstances, which we will explain further in the article.The actions, available with your crypto wallet can be connected to the paper money and credit cards. You can directly use cash when buying something, or simply landing it to friends and family. The bank product - credit cards, are a tool of the middleman, that have your money and you depend on it in so many ways.Having that in mind, let’s jump to the crypto wallet by comparing the cash to the cryptocurrency. It is the port or place, where you receive, store and send coins. Usually, when doing any action within the wallet, there are no fees. When you decide to send to others or even trade or deal with an exchange (the third party), you will have additional taxes for the services. Sounds familiar? Yes, that is the connection to the credit cards and banks, that we wanted to outline. Let’s dig deeper and peel each layer of information, that there is about cryptocurrency wallets.What is a crypto wallet?This is a program, that helps you manage cryptocurrencies. It generates and stores two codes, known as the public and private key, which are the poles of that whole idea and execution. You use the private key to access the program (something like your pin code) and the public one (similar to IBAN or bank account number) to direct the coins flow from and to your wallet.In order to be part of the crypto-sphere network, the wallet is an essential entrance point and constant connection to the blockchain. Whoever has access to the private key, related to an address containing funds, can perform a transaction and spend every coin inside.How it works? What does it do?Here is the time to emphasize on one very important aspect of the crypto wallets’ mission. Let’s first explain one misleading idea first – where are the coins really stored? This is not in the wallets, but in the blockchain. Public and private keys are your way to reach it, so you can supervise the balance and run other operations.In other words, when somebody sends you Ethereum for example, they sign the ownership of a certain amount to you, well to your public key (wallet address). That way, they are saved in the blockchain and accessible only by you, through your private key in combination with the public one. This pair dependency is automatically created by the wallet. In case they don’t match, the sender’s wallet balance will decrease, but yours won’t increase.Different kinds of cryptocurrency walletsCrypto wallets are separated by their functionality (storing and accessing your digital coin
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