What is a crypto Wallet?

Wali Ur Rehman
2 min readJan 5, 2022

Just like you carry your physical money in your wallet. To carry your digital / crypto currency you need a Crypto Wallet. You can use this wallet to store your crypto currencies and NFTs. You can also make payments online from this Crypto Wallet.

Unlike your real wallet which holds your cash. Crypto wallets actually do not hold your crypto currency or NFT. They just hold your private keys to your holdings on the blockchain network. So remember; if you loose your key — you loose your money and nobody can help you to recover it. It is impossible. NEVER LOOSE YOUR KEYS.

Online Crypto Wallet

Examples of online crypto wallets are MetaMask and Coinbase, these are the easiest ones in functionality. You can use them as Browser extension on your computer and you can also use them on your mobile like an Android / iOS application. They are easy to use but do carry a degree of risk as hackers can gain access to your wallet, If the security features of the wallet provider is low. You should always use a tough password and enable Two-Factor Authentication for logging-in your wallet. This enhances the security to a higher degree.

Hardware Crypto Wallet

These wallets look like USB drives. As they are not always connected to the internet, they offer are higher degree of safety. Whenever you want to do a transaction, you just connect it to your computer and remove it once the transaction is doone.

Paper Wallets

Simplest form of wallet can be called a paper wallet. In this you just write down the keys on a paper and store it in a safe place, like lockers. When you want to use it, you take out the paper and type the keys individually for making the transaction. These are the most uncomfortable ones to use as you need physical access to the paper. You also have to type out the complete key manually.

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Wali Ur Rehman
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Hi everyone, my name is Wali. I study in Class 5th. I write about Crypto Currency, Science, Technology, General Knowledge