Cryptocurrency Wallets

Cryptocurrency Wallets

By Michal Lewicz | Money Makes Money | 23 Feb 2020


None of the cryptocurrency wallets physical stores cryptocurrency, but only address ( keys) necessary to control those cryptocurrency.

 

 

Long story short, wallets are like boxes that everyone can insert something (public key) but to take out something you can only do it by using private key.

 

 

Public address (public key) you can share with everyone that they can send you cryptocurrency.

 

 

Private address (private key) gives you access to your assets, if you give it to someone he will have full control over your wallet.

 

 

If you lost your mobile or Pc with your wallet it doesn’t mean you lost your cryptocurrency, if you made a backup of your private address (private key).

 

 

Seed

 

 

Seed is a 12 or 24 words phrase which controls your private key. It’s easy to write down and remember and it’s used to backup and restore control over your wallet. Seed will work only on the wallet it was created. So You can restore your wallet on a different device but you need to do it on the same wallet.

 

 

Hot wallets and cold wallets

 

 

  • Hot wallets are those which needs Internet connection therefore are less secured. We have desktop wallets on pc and mobile wallets.
  • Cold wallets are used on offline devices and are more secured. It can be a hardware wallet or paper wallet.

 

 

✔Cryptocurrency Wallets installed on mobile devices with Android or iOS are more secured than desktop wallets on pc with Windows.

 

 

✔ If wallet can generate seed that means cryptocurrency on it belongs only to owner of the seed. If it doesn’t generate the seed that means the access to your cryptocurrency can have a 3rd party.

 

 

✔ Cryptocurrency exchange is not a safe place to store your assets. If you are not a trader I would not recommend doing it. Exchanges are often hacked or owners disappear with users funds.

 

 

✔Not your keys, not your crypto.

 

 

 

Example of hot wallets:

 

 

 

 

Example of cold wallets:

 

 

Hardware wallets:

 

 

 

 

Paper wallets:

 

 

  • cryptosteel.com (engraved in metal kit)
  • Bitcoinpaperwallet.com (for generating QR codes)
  • Before using any of those two find out safe method of generating paper wallet offline

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Michal Lewicz
Michal Lewicz

www.moneymakesmoney.info


Money Makes Money
Money Makes Money

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