A cryptocurrency is a virtual digital asset and a form of currency that is secured with cryptography that makes it impossible to replicate or double-spend. Most of the cryptocurrency is based on blockchain technology, a decentralized network of distributed ledger served by a network of varied computer devices.
These currencies, unlike physical currencies, are not issued by any government or centralized authority and therefore, they are mostly free from government intervention or manipulation. Now as we know, cryptocurrency is digital and cannot be stored in banks or servers, instead, it is stored on the blockchain, only accessible through private keys which are like passwords.
Crypto Wallet is digital or physical device that stores your private keys and keep them safe and accessible. These wallets also allow you to spend, send and receive cryptocurrency, such as Bitcoin and Ethereum, like normal currency.
In this article, we will seek to understand and learn more about Crypto Wallets and their functions. We will also discuss some of the major Wallets available in the market.
How Does a Cryptocurrency Wallet Function?
- Now as we discussed, Cryptocurrency is very unlike normal currency and therefore cannot be stored in any central location, instead, it is in blockchain.
- Your holdings of cryptocurrency living on blockchain can only be accessed through a private key which is like a very complicated password. This key proves your ownership of the asset and allows you to appropriate it. Therefore, if lost, you lose access to all your Crypto.
- A Cryptocurrency Wallet stores all your private keys and allows you to use them to access your crypto on blockchain and spend, send and even receive it.
- A simple wallet has a pair of public and private cryptographic keys. A public allows the you to receive Crypto on the address derived form it which the private key lets you spend your crypto from that address in blockchain.
- It is important to understand that the cryptocurrency is not itself in the wallet but it is accessed through the key that is stored in the wallet but this process looks simplified through these wallets.
Some Leading Crypto Wallets to Consider
Crypto wallets are available in many forms, from hardware wallets, that look like USB stick, such as Ledger to software wallets such as Exodus and Electrum. Moreover, you also have option to choose the online or offline location of storage of the private keys. Here are some leading crypto wallets to consider:
- Coinbase Crypto Wallet
- Electrum Crypto Wallet
- Mycelium Crypto Wallet
- Exodus Crypto Wallet
- Guarda Wallet
And many more. Each with their own niche and use case.
Ellipal is one of the most trusted cold wallets in the market, that means that it is completely offline and isolated from any connections or networks, even during usage. Due to this, Ellipal is 100% secure from any kind of hacks or malwares and your Crypto data is always safe. It uses QR displayed on its small screen to communicate with its app and carry out the transactions.
Cold Wallets are the safest kind of crypto wallets because they are protected from hackers and viruses that might steal your private key through physical severance of all outside connections.
ELLIPAL Titan Mini crypto cold wallet is small, portable and has a small, 4-inches touch color display that makes it very easy to interface with and use for transactions. Ellipal. It is the next generation of Crypto wallets and it is much easier to use than hardware wallets which need to be physically connected to the network devices which might compromise your key’s security.
Cryptocurrency is a decentralized asset and that means that there is no central body which can protect your assets or insure it against theft and online hacks which happen very regularly. In such case, the doctrine of caveat emptor applies which means “let the buyer beware”. You must choose the best Crypto wallets to secure your digital assets and Ellipal is one of the safest alternatives in the market right now.