Crypto wallet is a device (or program) that lets you store and transfer all your digital assets.
In todays world of cryptocurrencies, safety of one assets becomes a number 1 priority for every investor. With the recent news circulating web about Binance holding all withdrawals from their exchange many people started to wonder what does it exactly mean to own a cryptocurrency and what happens if they will lose access to exchange. Investors starts looking for more risk-free storage for their coins and one of the easiest and most efficent storage programs/devices are crypto wallets
How does it work?
`Every wallet works by number being generated with length that is suitable for given crypto technology. This number is then converted to a private key using crytpographic aglorythm used on a given blockchain. Then using a private key as a ,,base” public key is being generated. The two keys has diffrent usage:private key is used to send and access user crypto and the public key is used for receiving assets from other users,companies etc. Wallet that can be a program online or a physical device, store both keys making transactions possible
Pros of crypto wallets
With wallet and a private key user is the only person with access to their digital crypto. There is no third-party that can monitor and manage assets on a account making user their own bank
Cons
Main negative asspect of crypto wallet is user responsibilty. In case of sharing a private key to someone or losing a seed phrases user can forfeit access to theirs crypto, there is no third party that can return users money.
Sources:
https://en.wikipedia.org/wiki/Cryptocurrency_wallet
I think that with the increase in popularity in cryptocurrencies the use of crypto wallets will become more of a standard form of holding your savings. Unfortunately, they are not completely out of harms way of hackers so you must take all of the safety precautions to secure them such as a multi-factor authentication and using an hard and long password.
I think it is a safe “wallet”. Nobody can steal our money and hack the system. It will be useful especially for entrapreneurs.
Seems useful tho not innovative. This way of securing user information has been around for years. I see nothing special in crypto wallets implementing these security precautions into their software. It is completely normal in 2022 for online services to set multiple ways of securing one’s access to private information, it is rather surprising if one software doesn’t have it. Yeah, I should admit that they oriented right on time to create this fancy thing called a crypto wallet but it is not that much different from online banking or other brokers’ software that is used for anything that is connected to money transfers or online assets manipulations. E.g. online stock markets or forex markets.