To purchase, sell, and exchange cryptocurrencies, you need something known as a crypto wallet or a digital wallet. This type of wallet is exclusively online and enables you to exchange various forms of cryptocurrency through platforms and apps like Noones.
A digital wallet works in a very similar way to a traditional wallet. It’s where you can add, store, and take out money to perform transactions. Crypto wallets are safe and secure and are perfect for new and seasoned investors.
Let’s take a closer look at crypto wallets and how they work.
Public and Private Keys
To create and access a crypto wallet, you’ll need two components. The first is a public key, which is usually an email address or username. This is publicly known information, and it acts as an identifier that you can share with others to validate your profile during crypto transactions.
The second is a private key a unique password that only you should know. You will need to insert your private key into a crypto exchange platform to buy, sell, or trade any form of cryptocurrency to authenticate yourself.
Your Wallet Address
Your crypto wallet address is part of your public key. It’s unique to you and distinguishes your wallet from the millions of others out there. You will use your wallet address to receive cryptocurrencies by sending the long series of letters and numbers associated with your wallet to the sender.
Types of Crypto Wallets
There are a few different types of crypto wallets, and it’s important to be aware of each type before you open your own digital wallet for cryptocurrency transactions. The four main types of crypto wallets include the following.
Mobile wallets
A mobile wallet uses an app that stores your private key so you can store and exchange cryptocurrency on your smartphone. This type of wallet is more prone to hacks and malware than other options but makes purchasing and selling assets quick and simple.
Web wallets
This type of crypto wallet includes online platforms that store your public and private keys on a secure server that is unique to each platform provider. Web wallets are convenient, but they tend to be less secure than other types of wallets because they’re exclusively online.
Desktop wallets
As the name suggests, this type of digital wallet is used on desktop computers and stores your private key on your computer’s hard drive. Desktop wallets offer a higher level of security than mobile or web wallets because your details are stored on your personal computer and not a third-party server.
Hardware wallets
A hardware crypto wallet is stored on an external device, such as a USB or hard drive, that you can connect to your desktop computer or laptop to access.
You’ll need a specific software program to use a hardware wallet and exchange cryptocurrency, as well as a cryptocurrency payment gateway. This type of wallet is less prone to hacking because it’s stored on your personal device at home, but you’ll need to make sure you buy a trustworthy external storage device and software program to avoid problems.