A cryptocurrency wallet stores public and private keys necessary for cryptocurrency transactions. It could be a device, physical medium, a program, or a service. Crypto wallets, therefore, are vital to send, receive, and store digital assets.
To send crypto coins and tokens, one needs the other person’s wallet address or public key. If you want to receive coins, you also need to share your wallet address so the sender can transfer digital money. As you may have known, there are various types of crypto wallets that crypto holders and traders can choose from. This article will discuss cryptocurrency wallets and how to put cryptocurrency in a wallet.
Learning More About Cryptocurrency Wallets
Crypto wallets are used to make transactions, like sending money, monitoring balance, and conduct other operations. A cryptocurrency wallet comes with a public key and a private key. The public key is used to receive funds, while the private key is for signing transactions and to prove that the holder is the owner of the related public key. The public key is the one that is shared with others; the private key is strictly confidential and must never be shared with others under any circumstances. Cryptocurrency wallets can be classified into three categories: software, hardware, and paper.
This type of wallet is a non-physical program that can be downloaded into the user’s computer. Software wallets are encrypted and require a password before users can access the funds stored in them. One issue about this type is that it is connected to the Internet, making it vulnerable to malware, virus, and hackers. Software wallets can be desktop, mobile, or online.
- Desktop – This wallet can be downloaded and installed on a personal computer or laptop and are only accessible from that particular computer where it was installed. Desktop wallets have one of the highest security levels, but there is still a possibility of losing your funds once it gets hacked or gets a virus.
- Online – This type is convenient to use as it can be accessed from any computing device in any location. The downside of online wallets is that the private keys are stored online and are controlled by a third party, making them more vulnerable to cybercriminals.
- Mobile – This wallet is run on an app on your smartphone. This type of wallet is much smaller and simpler to use compared to other software wallets. They are ideal as they can be used anywhere, including retail stores.
One of the main differences between a hardware wallet to a software wallet is that it is a physical device that looks like a flash drive. They can make transactions online but are stored offline. This means they are a safer option as the data and information being hacked or stolen are minimal. Hardware wallets are easy to use: simply plug in the device to any computer connected to the Internet, then enter your PIN, send or receive the coins, confirm, and you’re done.
This type of wallet also provides a high level of security. Paper wallets are a physical printout of the user’s public and private keys. Transferring funds with a paper wallet can be done using the private keys or scanning the paper wallet’s QR code.
Best Bitcoin Wallets For 2021
Before we learn how to put cryptocurrency in a wallet, it is essential to first choose a crypto wallet. There are a lot of crypto wallets available in the market. Choosing the best one for you can be overwhelming. We’ll make it easier for you by giving you the three best Bitcoin wallets for this year.
- Ledger Nano X – This type of wallet is a hardware wallet. They are used by plugging them into the user’s computer. It is certainly one of the best Bitcoin wallets as it keeps your crypto asses safe and secured, can store up to a hundred different apps simultaneously, and supports over 1,500 cryptocurrencies. This wallet interface allows users to add new wallets for other currencies and manage their portfolios from the software.
- Trezor Model T – This is a cold storage wallet that specializes in Bitcoin and other leading cryptocurrencies. It has an unlimited number of wallets available simultaneously and has a wide list of supported cryptocurrencies.
- Exodus – This wallet is ideal for beginners as its user interface is simple and easy to use. It has a built-in exchange, so trades and purchases can be done with ease and protect the user’s Bitcoin address. It also supports a vast range of currencies, including Bitcoin Cash and Dash.
Steps On How To Put Cryptocurrency In A Wallet
Now that you have learned the different types of crypto wallets, we’ll go to the next important thing: how to put cryptocurrency in a wallet. In this article, we will show you the steps on how to transfer Bitcoins in a wallet.
How To Send Bitcoin:
- Open the Bitcoin wallet application on your device, then click ‘Send.’
- Copy the receiver’s wallet address and paste it into your own wallet app. If the sender and receiver are transacting in person, they can opt to use the QR code. Choose ‘Scan QR code’ and scan it with the app.
- Select the wallet you want to send Bitcoin from. If you want to send Bitcoin cash, click a BCH wallet. If you want to send Bitcoin, choose a BTC wallet.
- Key in the desired amount you want to send, then click ‘Next.’
- Review the details. Once you are sure that everything is correct, slide to send.
- If you want to transfer or move your money to your own wallets, go to the ‘Send’ section of the app, then click ‘Transfer between wallets.’
How To Receive Bitcoin:
- Open the Bitcoin wallet app, then select ‘Receive.’
- Select the wallet you want to receive Bitcoin to. If you prefer Bitcoin Cash, choose a BCH wallet. Otherwise, if you prefer Bitcoin, select a BTC wallet.
- The wallet you selected will then generate an address that will allow you to receive coins. Once the address is generated, copy it by tapping the QR code if you are using your smartphone or click it if you are using a computer.
- Provide the said address to the cryptocurrency exchange or to the person who will send you Bitcoin. If both sender and receiver are present and are doing the transaction in person, the sender can opt to scan the receiver’s wallet QR code using their device. Learn more about cryptocurrency wallets here!
Cryptocurrency has been around for several years. And in the past few years, it has gained popularity, and it continues up to now. More and more people are becoming interested in cryptocurrency, digital money, crypto coins, and tokens. Some others have been investing and trading cryptocurrencies in the past years.
If you are among those who are interested in starting a cryptocurrency investment, it is essential to learn and understand how it works and how it is played. Learning how to put cryptocurrency in a wallet is one of the basic yet among the most important things you need to know.