Crypto 101: What Is a Blockchain Wallet?

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Start your crypto investment journey by learning how to use blockchain digital wallets today. Read on to learn the different types you can choose from.

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2021 was an excellent year for cryptocurrency. Despite the pandemic, the global crypto market reached an all-time high of $1,782 billion, and experts say these numbers will continue to rise.

Such a huge success has attracted both new and long-time investors to the crypto sphere. Bitcoin, for instance, saw a 55% increase in investors during the last leg of 2021.

If you want to incorporate crypto into your investment portfolio, it’s important to familiarize yourself with the processes. These include using blockchain wallets.

Reblonde, a leading agency providing blockchain PR Services, explains everything you need to know about blockchain wallets.

Blockchain Wallets Explained

Blockchain or crypto wallets enable investors to securely manage and use crypto assets such as Bitcoin and Ethereum. They hold information on all transactions, including the balances held in a given address and who controls those balances. Users can freely move coins, whether through bank transfer or an e-wallet.

Understanding Private and Public Keys

To better understand blockchain wallets, you must also understand private and public keys. When a user creates a blockchain wallet, a private and a public key are generated.

A public key is a cryptographic code that you can share with others to receive funds. Private keys, on the other hand, enable you to access and spend those funds, so you must never share them with other people. Otherwise, you risk your account being compromised.

Types of Blockchain Wallets

Blockchain wallets can be categorized into two: software wallets and hardware wallets. Here’s what you need to know about them:

Hardware Wallets

A hardware wallet enables users to store their cryptos offline in physical hardware. Simply connect the device to your computer via a USB port to conduct transactions and make transfers. Most hardware wallets can operate as a web-based interface, an application, or a separate software wallet. Whichever you choose, you get the highest level of security.

High-end hardware wallets usually costs around $100, depending on the features offered. Ledger and Trezor are some of the most popular options available in the market today.

software codes

Software Wallets

A software wallet holds all of your private keys online. They can be downloaded as a computer program or a mobile application. Unlike hardware wallets that support different currencies, software wallets only accommodate a single cryptocurrency.

  • Desktop Wallets: These are software that can be downloaded using any computer. However, they can only be accessed on the device where you installed the program. The most widely used desktop wallets include Exodus, MetaMask, and Electrum.
  • Web-Based Wallets: End users can access this type of wallet across multiple devices, including desktops, tablets, and mobile phones. Your private keys are stored online, and transactions are managed by a third party.

A great example is GreenAddress, a Bitcoin wallet that can be used on the web or through an application on your Android or iOS device.

  • Mobile Wallets: A mobile wallet functions similarly to online wallets, except they are only available on mobile devices. Mycelium is one example of a popular mobile wallet.

How to Set Up a Blockchain Wallet

Setting up an account is fairly simple. First, download the app or software on your mobile device or computer, then set up two-factor authentication for added security. Then, you’ll be asked to create your very own safety keys.

Once complete, you can now transfer your cryptos from the purchase location to your blockchain wallet. For transactions made on Coinbase, click the “send” option, then enter the wallet address and the amount of crypto you want to transfer.

Most blockchain wallets can be downloaded for free and have no charge if you’re only using them to store your crypto assets. Others, however, charge a certain amount for specific transactions, crypto staking, and consultations.

Blockchain PR Services You Can Rely On

Despite its popularity, cryptocurrency is still met with skepticism by many people. Some are even unaware that it exists. At ReBlonde Public Relations, we’ll help build, promote, and establish your brand to the right people. No crypto project is too big or too small with our team of experienced publicists. Whether you’re a crypto startup or an established brand, we have the right solution for you.

Reach out to our team today to book a free consultation.

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