Understanding What a Cryptocurrency Wallet Is

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When it comes to cryptocurrencies, there are a lot of questions that people ask, but believe it or not, one of the most common problems that people have is that they don’t understand exactly what a cryptocurrency wallet is. In this guide, hopefully we’ll be able to give you enough information so you can better understand what a cryptocurrency wallet is, so you’re not just thinking that it has to be a physical wallet you have in your back pocket (it can be, but it doesn’t have to be). 

What Exactly Are Cryptocurrency Wallets? 

Crypto wallets, as they’re often called, are normally a software application that you install on your computer which holds both private and public keys with the numerous different (and sometimes just an individual one) blcokchains that exist in the cryptocurrency market today (Bitcoin, Ethereum, Monero, Dash, etc. the list can go on and on). When you’re worried about investing, mining, or even trading bitcoin, you need a wallet, because it acts like a personal bank account stash for your coins. All of your information is stored as digital data so, in a way, it’s the only way to put your digital coins into a somewhat physical form even though it’s not actually physical. 

How Do Wallets Work? 

Just like a regular stock market exchange, when one user sends coins to another user via an exchange like Rubix, they’re basically sending someone a portion of their main wallet’s private or public keys. Many wallet software programs actually create “temp” wallets for the sake of exchange, which is why you’ll notice that it has a different wallet key for each bit that is sent or received. When the user enters the keys to get that cryptocurrency amount from, then they receive that bit of digital currency. This is why you may see numerous wallet keys per transaction of your wallet, especially when it’s outgoing. Users aren’t supposed to be able to access your actual wallet’s main key (unless they hack it). 

Are There Different Types Of Wallets? 

Yes, indeed there are. You can get software wallets, paper wallets, and even hardware wallets. A paper wallet is a software program that lets you generate the keys for your coins and print them out so you can stick them in your safety deposit box or other safe location. Hardware wallets are often USB drives, or external hard drives, SD cards, or more that allow offline storage, and software wallets are just programs that sit on your computer that allow you to store your cryptocurrency on them. 

Online wallets are ways you can store your information on a public exchange or a private wallet on a website’s platform. This is often an exchange of some sort or faucet site that holds onto your own data and puts your coins into a special “wallet” online. 

Conclusion 

Social Media Wallets In the near future, there’s going to be a revolutionary breakthrough exchange that allows users to be able to trade on social media sites like Facebook for actual currency. What this means is that they’re going to give you a completely secure account and online wallet that doesn’t publicly display your information to others, but at the same time will generate a plethora of opportunities so you can share your cryptocurrencies with friends and even family easily and securely on Facebook and other social media sites. If you head over to Rubix.io’s website you’ll see what we’re talking to, and you may want to opt in so you’ll be ready when it’s released.

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