What is a crypto wallet and why you need one?
A crypto wallet is a piece of software that contains the “keys” and the address that allows you to send, receive and store cryptocurrencies.
In the same way that Paypal uses an email address, the crypto protocol uses an address like 1JArS6jzE3AJ9sZ3aFij1BmTcpFGgN86hA extracted from the public keys stored in your wallet.
In this section we’ll talk about the main types of wallets and how to create one step by step with blockchain.info.
Different types of crypto wallets
Generally speaking, there are four types of crypto wallets:
1. Web wallet
A web wallet is the most used and the easiest to set up.It’s accessible through your web browser and it is stored in the servers of the service provider. It works in the same way as typical email clients, like Gmail or Hotmail.
2. Desktop wallet
A desktop wallet is installed on your computer and allows you to fully control the wallet because private keys are stored locally.
There are two types of desktop wallets:
Full Clients, that download the entire blockchain; and Lightweight Clients, that store the private keys locally, but they don’t download the entire blockchain, accessing it through proxy servers.
3. Mobile wallet
A mobile wallet can work as Full Clients, Lightweight Clients, or Web Clients. Some of them are cross-platform, linked with web or desktop clients, sharing the same source of crypto.
4. Hardware wallet
A hardware wallet is a wallet that stores your crypto (private keys) in a secure hardware device that is offline and not connected to the internet. You are in charge of and responsible for storing your private keys in a secure manner by using a device, such as pen drives, paper wallets or some other device type.
How to create a crypto wallet with blockchain
The easiest and fastest way to get started in the cryptocurrency world is by creating a web wallet. There are several well proven providers such as Coinbase or Blockchain.com.
In order to receive crypto to your crypto wallet you need to know what your wallet address is. You can see the wallet address in the control panel of your wallet as a QR or as an alphanumeric code.
Share the crypto wallet address with the people you want to receive crypto from.
To send crypto you must add the recipient wallet address you want to send your crypto to, then select the amount before verifying and confirming the transaction. Quickbit Website Account does not provide a selling option. If you want to send crypto you must use another service.
About commissions, confirmations, and security
Cryptocurrencies are much cheaper, faster, and safer compared to the traditional banking system operations. However, that does not make cryptocurrencies free, instant, or impossible to intercept.
When buying crypto you will see that the amount received is slightly smaller than the amount sent.
These fees are the incentive for miners to provide computing power to the crypto network and to keep the system running.
You can adjust the commission when sending crypto, but keep in mind if the commission you set is very low, the transaction will take longer to be confirmed by the network.
To avoid fraud, transactions in the crypto protocol must be confirmed by the network.
The system is designed so that each block of transactions is mined in a set interwall of time depending on the blockchain you are using.
Both the crypto protocol and most crypto wallets are equipped with security layers that prevent your crypto from being easily accessible to “foreign users”.
Other ways to store your crypto
You don’t usually carry $ 3.000 in your pocket, right? The same applies to crypto. You should not store all your crypto in the same place.
There are several ways to do this and most of them free or at a low cost.
Two of the most common are:
Cold Storage: Cold storage refers to that you are keeping your bitcoins offline. This can be done indifferent ways, as in servers disconnected from the network, USB flash drives or paper wallets.
Creating other wallets: You can create as many crypto wallets as you want and to store the crypto you have in them. A common practice is to deposit a certain amount in the crypto wallet more used to make transactions with and leave the bulk of your crypto in another crypto wallet.