A Crypto Wallet is a device that lets you store and transfer cryptocurrency. It stores the private and public keys of users. The wallet doesn’t mean it in the same way the physical wallet holds cash. The crypto wallet holds the private key to make transactions and it shows the balance in your addresses by reading the public ledger.
The term Key is a group of long strings with not recognized characters. The public key allows receiving the cryptocurrency transactions while the private key proves the ownership of the respective public key. The public key is open to anyone whereas the private key remains secure and secret.
For instance, the public key is like a bank account and the private key is the password or pin of the account. Public keys are used to encrypt data. Encrypted data is decrypted using the private key.
There are two categories of crypto wallets. One is a hardware wallet and the other is a software wallet. Software wallets are like desktop programs or browser extensions and it helps people to send, receive and store crypto.
Hardware wallets are physical devices that are plugged into the computer and it has the same purpose as software wallets.
Software wallets are called hot wallets and hardware wallets are called cold wallets.
First, we’ll explain the merits or advantages of the crypto wallet.
Here are some demerits of Crypto Wallets,
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