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How do cryptocurrency wallets work and where to get one

by Bitforx

Posted onJan 21, 2019 by Bitforx

There's some vagueness around how we will use cryptocurrencies and execute them in real life. We got so used to the idea of FIAT money. We don't worry about transferring it, keeping or spend it. While on the other hand, cryptocurrency on its own is still difficult to understand - an asset with no economic base, a simple group of numbers and codes online. So we need an efficient tool to make these numbers work. That's where we answer so many questions, about how do we store, send, receive or track our cryptocurrencies and what is the best way to access it. Cryptocurrency wallet is an answer to all these questions. Let's move FIAT money away for a little while and discuss how will Bitcoin, Cardano, Ethereum or any other token function.

Physical wallets, Mobile banks, and Cryptocurrency wallets

It is always great to use an example while discussing a new product, something that is hard to understand. Let's compare our everyday leather wallet and mobile banks to the digital wallet. In a way, they have almost everything in common, but eventually, we understand that one overweights the others. 

Starting with physical wallets, getting the right number of your assets requires running through all the banknotes and coins. If you have more than one currency, it gets even harder to count and then convert them, to get the final value. Wallets don't tell you how much you own, where did you spend your money last night, and whether or not your wife/husband took a little glimpse on it. Not to mention the constant fear of losing it. 

Let's imagine one "pocket" on the web or a single application having all sophisticated, flexible features and handling all commands. The smart tool which combines all the pros physical wallet has to offer - cryptocurrency wallet.

It's only fair to mention mobile banks and web solutions the banks started using. While interacting with mobile banks, we face the main reason cryptocurrencies were created in the first place - to exclude the third party. Even though mobile banks offer almost all the advantages cryptocurrency wallets do, they still have lots of difficulties. Constant ads, useless offers, time-consuming transaction,  huge delay time and high commissions with limited transaction geography and so on.
While understanding the concept and use of crypto wallet and seeing all the parallels lets move to the main point of the article.

How Do Cryptocurrency Wallets Work?

Cryptocurrency wallet is like a safe, online “pocket”, where you are able to store all your treasured belongings, assets, investments. Every valuable asset has its corresponding token. And like every pocket or treasure chest needs a way of protection, so does the digital wallet. You need to keep the key, and passwords of your cryptocurrency wallet safe or you will lose the ownership of your valuables. So we have an online "pocket" and its protection keys. 

There are three types of the keys your digital wallet has: private, public, and master keys. In most cases, the user can see a public key (wallet address as well), from which he will receive and send his cryptocurrency. Other keys are mostly hidden and losing them will basically mean, losing the wallet. All of the keys are a combination of numbers and letters and look like this:

“ 31oM9degzCWwx6oXEeUMq4AMbrdE1bqeUq”
Bitcoin public key sample

You will have an individual public key for every cryptocurrency in your wallet. You will use different keys for different coins and send the address to complete the transactions. 

Cryptocurrency wallets generate different public keys for every cryptocurrency the owner wishes to have. It is important to choose the most efficient wallet, the one with better tools. After creating this "online pocket", you will have individual spaces for your altcoins and the best solution for storing, sending, saving, tracking, and many more. 

How to create a Cryptocurrency wallet?

Creating a wallet is surprisingly simple. There's a huge variety of choices you can make from web browsers. You can download the wallet on a smartphone from app stores or purchase hardware devices from online stores. It is important to define the purpose of the digital wallet and only after that create a corresponding one. 

Let's go step-by-step and create an example of a single wallet.

Bitforx Web and Mobile Cryptocurrency Wallet

If you have ever created any social media page, or even your email you know how to create a digital wallet. Here are simple steps for Bitforx wallet creation:

1. Go to Bitforx main web page or for mobile version visit Play Store or Itunes.
2. Sign up either from the mobile application or from the website.
3. Fill all the needed information accordingly and save your password safely.
4. Make the confirmations from the email.
5. For extra steps take 2-factor authentication and preferably upload your documents.
6. For the next step, you need to deposit the desired currency and do anything you would like with it.
7. Next would be a tip, for saving and storing your assets you better move all your belongings to Cold wallet.
6. Congratulations! You own Cryptocurrency Wallet you are one step closer to be part of the next mobile and smart generation.

By providing yourself with the right parallels, it's easier to understand the concept of a digital wallet. Creating a digital wallet is even easier. Remember to make the right decisions when thinking about making investments. Choose the safest and most trustworthy brand. Don't forget to keep an eye on your private information. Once you complete all the security measures, you're ready to be a part of the crypto community. 

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