Breaking Down Cryptocurrency Wallets

If you want to invest in or start using cryptocurrencies, you need to know the different types of crypto wallets, how digital wallets work and how to create a cryptocurrency wallet. You can’t own a cryptocurrency without some way to store them and keep them secure.
Wallets can help.

Table of Contents

What is a Cryptocurrency Wallet?

The main question people ask when acquiring cryptocurrency is: what is a crypto wallet? When you have cash, you need some place to store it. Most people will put their cash in their own wallet or purse.

You can take money out of your wallet and hand it to a cashier at a grocery store, or you can take change back from a vendor and put it in your pocket.

Since cryptocurrency is a digital currency rather than a physical currency, you need some way to store the currency so that you can accumulate and use it.

The different types of crypto wallets allow you to store and use crypto in a way that makes sense for you and your usage habits.

How Does a Cryptocurrency Wallet Work?

Cryptocurrency wallets work using private and public keys and an address. Crypto uses blockchain technology for transactions. When transactions are made, they will rely on your wallet’s address to deposit or remove money.

A wallet address can be thought of as your bank account number.

Types of Crypto Wallets

What is a cryptocurrency wallet type, and which should you choose? There are a lot of wallet types, but the most common are:

Desktop Wallet

Desktop wallets are the most popular wallet type and are installed on a desktop computer or laptop. These wallets connect directly to a cryptocurrency’s client and act as an interface to see all of your transactions.

Mobile Wallet

A mobile wallet relies on smartphones and an app to connect to the client.

Cold Wallet

A cold wallet is often thought to be the most secure as it stores crypto assets offline thus cutting off any potential access to it until you need to use your crypto again. In that case you would have to move funds from cold storage wallet into your active wallet account.

Your Nebeus wallet is available on both desktop and mobile devices to provide you transaction flexibility. Nebeus also has cold wallet (vault) storage for customers who don’t need immediate access to their funds and would like an added level of security for safe keeping.

How to Get a Crypto Wallet

If you want to get your own crypto wallet, choose from the types above and find one that you prefer. There are a lot of wallets available, and Nebeus does offer a wallet that you can sign up for here

Open a Wallet

Are Cryptocurrency Wallets Secure?

Crypto wallets are designed for security, but as you’ve seen already, the type of wallet will dictate the wallet’s level of security. Cold storage wallets are some of the most secure because they’re offline.

You should follow the best security practices when having a wallet.