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Crypto Wallet

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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

https://www.investopedia.com/best-bitcoin-wallets-5070283

https://www.businessinsider.com/crypto-wallet?IR=T