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Crypto Comics – What is Wallet

I tried to explain what Wallet is in comic strips.

TL;DR

I explained what Wallet can do and what the drawback of Wallet is.

Some Takeaway

The crypto wallet is software to connect blockchain to users. The wallet contains public and private keys. Public keys are similar to bank accounts, and private keys are similar to passwords. The wallet does not actually hold your crypto assets within the software. Instead, it is a browser to show where your crypto is in the blockchain and can use your key to prove transactions you initiate. 

Important of Wallet

One of the significant features of a wallet is to prove your ownership of the crypto assets. However, it is also important to keep your private keys hidden. Or you will lose ownership of the wallet when your private keys are revealed to the public.

Different types of wallets

There are many types of wallets. The types are related to the feature of security. It ranges from the most secure wallet to a less secure wallet. A paper wallet is the most secure since it is detached from the internet. However, if the physical medium has been destroyed, you will have no chance to recover your assets. In contrast, the hot wallet is the less secure wallet that has been connected to the internet. Hackers likely want to access your asset whenever possible.  

Alternative Methods

There are services to secure user wallets and provide custodian services. The well-known company is Coinbase. You access your assets similarly to log into your online bank account. They control private keys for you and provide the necessary security to protect your assets only if you pay them service fees to maintain such high security for you. 

Scams

Scammers also want your wallet access. There are many scams on the internet but mainly through phishing to trick users into providing private keys. Remember, you do not want to share your private key information in any circumstances. 

In conclusion

The crypto wallet is a piece of software to help you access your crypto assets and initiate transactions. Private keys are the most important information you should never reveal to anyone.

Check out my another article Crypto Comics – What is DeFi

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