A Quick Guide to Cryptocurrency Wallets

A Quick Guide to Cryptocurrency Wallets

WHAT IS A CRYPTOCURRENCY WALLET?

The concept of a wallet is more than just “a flat pocket-sized case to hold paper currency” in today’s world. Taking into account the aspects of safety and progression in payment technology, wallets have evolved into a platform that have different services integrated within. With that being said, you will still need a wallet to hold your cryptocurrencies.

A cryptocurrency wallet is a secure digital platform to store and access your digital assets, such as Bitcoin, Ethereum or EVR. It is a software-based program that helps you store your public and private keys, monitor your balance, and send and receive digital currency by connecting with other blockchain protocols.

HOW DOES IT WORK?

Cryptocurrency itself does not actually “exist” in a wallet. There is no physical form of storing or exchanging these currencies. To be able to send or receive your digital currency, a private key stored in your wallet must be compatible with the public key to prove your ownership. If the public and private keys match, your wallet will act as a personal ledger of transactions stored on the blockchain. The analogy is to think of the private key as being similar to a password that is confidential for your own use, and the public key as an email address which can be known by or shared with anyone.

TYPES OF WALLETS

There are many types of cryptocurrency wallets available out there in the market. Many cryptocurrencies have their own official wallet or highly recommended third-party wallet. Generally, these wallets are broken down into three main categories namely, software, hardware and paper. Among these three categories, only software wallets can be subcategorized into desktop, mobile or online.

There are three main types of software wallets:

1. Desktop Wallet: It is a type of wallet stored on your PC or laptop. You can only access the said wallet from the device where the wallet is installed.

2. Mobile Wallet: Like its name suggests, a mobile wallet runs on an app on your smartphone and follows you to any location. Notably, some mobile wallets provide additional features, functionality and security. In fact, the Everus Wallet gives wide usability for its EVR token, and a convenience factor by being closely tied to the Everus World ecosystem.

3. Online Wallet: Online wallet run on the cloud via web browser. In short, you could access the said wallet from any electronic device anywhere and anytime. As it is easily accessible, some wallets allow private data encryption, others may be custodial.

A hardware wallet stores your private keys on a physical device and acts as the signatory for transactions to and from your public key. Whenever you want to send digital currency, simply connect these hardware wallets to go online. Once the transaction is completed and validated, the wallet can be disconnected.

Paper Wallet: This simply refers to a piece of paper, or a physical copy, that contains your public and private key, in the form of a QR code or a string of alphanumerical characters. It keeps your digital currency offline. Users tend to store these paper wallets in a safe at home or in a bank vault. Since both keys are offline, you will completely avoid any threat of electronic-related fraud and theft. When you want to use your cryptocurrency, you can access your paper wallet to transfer funds or sweep your private key to another wallet.

Cryptocurrency wallets are built to be highly secure, with the intensity of security varying from one type to another. All forms of these wallets exist in the crypto world to serve different purposes, catering to people with different preferences. It is extremely important to do your research to choose a good wallet that is suitable for you. Nevertheless, you are always encouraged to back up your wallet, encrypt it or add extra layers of security. Make sure you follow best practices to ensure that your cryptocurrency wallet is safe and secure.

To learn more about Everus wallet, visit https://everus.org/ or download the Everus app on the App Store and Google Play Store.

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