Digital Wallets

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  • A digital wallet is used to ‘store’ digital currency – cryptocurrency

 

  • The wallet is a record of all transactions on the blockchain (as there are no actual coins)

 

  • To buy, sell or transfer any type of cryptocurrency, a digital wallet is required

 

  • The wallet stores private (for your own wallet) and public (for the blockchain transaction) keys, which must be kept secure at all times

 

  • Misplacing a private wallet key will result in losing all your investments

 

  • Some transactions will give rise to a small transaction fee, although much less than traditional bank fees

 

  • Digital wallets a pseudonymous, meaning they are partly private – although personal details cannot be found, every transaction on the public blockchain is recorded

 

  • Wallets can be in the form of;
    1. Hardware – extra physical device to store cryptocurrency
    2. Software – online, mobile or desktop
    3. Paper – printing out the wallet keys

 

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