What is a cryptocurrency wallet?

Ludvig
29.04.2022
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cryptocurrency wallet

Cryptocurrency is in the wind during the day, partly because many are considering investing in it to be able to afford to buy a home sometime in the future. To what extent this is wise, there are very divided opinions about.

But there is at least one thing everyone knows, and that is that cryptocurrency is not stored in the same way as other types of currency , such as english kroner or US dollars. These are currencies you can use both through debit cards or in the form of physical coins and banknotes.

Cryptocurrency is a digital currency, but despite that, there are some similarities between cryptocurrencies and other currencies (which can occur in a physical form). One of these similarities is that one must have a place to store their currency.

Would you put your debit card or a large pile of coins on the table during a dinner visit? Probably not! In the same way, you do not store cryptocurrency directly on the computer and leave it on the desktop. What you need is a cryptocurrency wallet.

What is a cryptocurrency wallet?

There is a bit in the very concept of what a cryptocurrency wallet is. This term is a combination of two languages – english and English – where the word cryptocurrency is english and wallet is English.

In this case, it would be more correct to combine each word with a word in the same language. It would have given us slightly different concepts, but the meaning would still have been the same:

  • Cryptocurrency wallet.
  • Cryptocurrency wallet.

With that said, there is nothing stopping you from calling it a cryptocurrency wallet as well. It is completely within, and those who want to use this term can of course do so. We will use this term in the rest of this article.

A cryptocurrency wallet is thus a cryptocurrency wallet. And as most people know, the wallet is a place where you can store both debit cards and physical coins – as long as you choose to get for the traditional wallet type.

A digital cryptocurrency wallet

Since cryptocurrency is a digital currency, it goes without saying that the currency can not be stored in a physical wallet in the same way as the debit card and any coins / banknotes that you may have lying around.

The cryptocurrency wallet also has to be digital in order for it to have any function in connection with your cryptocurrency.

Three important concepts in relation to Cryptocurrency wallet

In connection with the cryptocurrency wallet, there are three concepts that are extra important. We will take a closer look at them below:

  • Address.
  • Public key.
  • Private key.

The address is a term used for where the transaction is to be carried out. When a transaction is to be completed, this is the address you must enter.

Then we have the term “public key”. This term refers to the key you must provide to the third party who will complete a transaction for you. The public key must be provided in addition to the address, as mentioned above.

Finally, we have the term “private key”. This is like a password, and it’s meant for your eyes only. It is important that no one else gets hold of it!

Watch our amazing video about cryptocurrency:

Author Ludvig

Ludvig har lang erfaring med kjøp og salg av kryptovaluta. De senere årene har han tatt det til et nytt nivå og prøver å leve av kryptovaluta trading. Han følger godt med på markedet og har opparbeidet seg god kompetanse på teknisk analyse mm. Vi er veldig glad for å ha Ludvig med på laget, og er det noe du lurer på angående kryptovaluta er dette mannen du spør!