What are cryptocurrency wallets?

Millions of people around the world use cryptocurrency wallets, but there is a great deal of misunderstanding about how they work. Unlike traditional *pocket* wallets that store our paper and coins as well as our credit cards, digital wallets do not store cryptocurrency, in fact, Currency is not stored anywhere and has no physical presence, all that exists are transaction records stored on the distributed ledger or the blockchain.

A cryptocurrency wallet is software that stores private (which allows us to transfer ownership of digital currencies) and public keys and provides the tools and technology needed to interact with the blockchain, in order to enable users to send, receive and store digital currencies and monitor their balance.

If you want to use bitcoin or any currency

For other cryptocurrencies, you will need to have a wallet.

Therefore, you should be careful in choosing the appropriate wallet that will be used for your digital transactions, and in the presence of a large number of wallets that provide different and competitive features, the choice becomes difficult, however, a high-quality wallet is necessary to maintain the security and safety of your digital currencies.

Types of digital wallets :

There are several types of wallets that provide different ways to store and access our digital currency. Among them, we mention two distinct categories: software and hardware (hot and cold).

Software wallets can be desktop, laptop, smartphone, or online.

• Desktop: Wallets are downloaded and installed on a PC or laptop. This type of wallet is considered a high degree of security and privacy, as long as our device is protected from hacking and malicious viruses, because the result is the loss and theft of our digital funds, and this is the necessary reason to encrypt the wallet with a strong password when creating it. In addition, we upgraded it to the latest update and version when it was published by the wallet developer team, and this type is available for different operating systems.

• Smartphone: Wallets work in the form of an application on the phone, and are useful because they can be used anywhere including retail stores, and are usually available for both Android and iOS systems, and are characterized by their small storage capacity.

• Online: The wallets work on the cloud or what is called hot wallets, and they can be accessed from any computer or laptop connected to the Internet anywhere. This type of wallet is not very secure, and its use should be avoided unless absolutely necessary.

▪︎ Hardware: Hardware wallets differ from software wallets, as they store the user's private keys on a hard device such as a USB. Although hardware wallets perform transactions online, they are stored offline which provides added security. Hardware wallets can be compatible with many crypto protocols and can support different currencies, it just depends on which one you decide to use, moreover, its use is easy, users connect their wallet to any computer connected to the internet, and enter their PIN And then he simply does the operation he wants, and this type of wallet is often used by owners of large amounts of Bitcoin and other cryptocurrencies.

Finally, it can be said that hardware wallets allow for the possibility of dealing smoothly with keeping our currencies away from danger in an offline mode, and for this reason this type is considered more secure and safe.