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Blockchain Wallets – The Safest Heaven For Crypto Holders

Blockchain Wallets
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Why do we need blockchain wallets? What is the first indispensable part of life that you can think of and can’t live without? The entire attainment of our dreams and desires in this world proves that money buys all happiness.

No one can deny the fact. All our lives, we earn to acquire a livelihood to sustain ourselves. The entire purpose of life revolves around expenditures. Our assets are the most valuable things for us in this world. These assets are to be secured somewhere, so we keep our money in our wallets. Wallets hold the same significance that our money holds in our lives. 

Let us have a brief look at blockchain wallets. Like our real wallets where we put our traditional fiat currencies, crypto investors also have digital wallets that hold up the crypto assets. Blockchains wallets are known to be the ones fit for this purpose. This blockchain wallet service is provided by Blockchain software founded by Nicolas Cary and Peter Smith.

Like traditional banking transactions, cryptocurrency transactions are made through blockchain wallets and can convert into local or traditional currency, which can never be manipulated or sabotaged. E-wallets are created online for free; account numbers and passwords are provided. Therefore, the security of cryptocurrency is completely ensured by blockchain wallets.

Classification of Blockchain Wallets

There is a diverse range of blockchain wallets around the globe. Based on the private keys, blockchain wallets are majorly divided into hot wallets and cold wallets. 

  • Hot wallets show online cryptocurrency transactions. These wallets are easy to use as they are fast as well, and you can just handle them on your own. All day-to-day transactions come under this head.
  • Cold wallets are different from having highly secure offline crypto transactions. Private keys are stored in hardware and other external devices, not on the cloud. It seemingly prevents you from online thefts.

Making you aware of other types of blockchain wallets is necessary. Let us have a look over it as mentioned below.

  • Software Wallets: These cold wallets are downloaded on desktop or mobile online in the form of apps that make it easy for your transactions.
  • Hardware Wallets: Hardware wallets are completely cold wallets that are in the form of hardware devices like USB flash drives. These are portable internet-enabled devices and hack proof to a greater extent.
  • Paper Wallets:  Quick response codes or QR code-based offline wallets are basically paper wallets. It contains both public and private keys which work with the software wallets in the transaction process. It can hold a heavy amount of cryptocurrency, which is its major boon.

Working of Blockchain Wallets

We have had enough of what blockchain wallets are, but how exactly do they work? Is it feasible enough? The answers to all such questions are affirmative. 

The work is not very complicated. Two types of keys, private keys and public keys, are to be known by you before using the blockchain wallets. Private keys are kept secret, and the public key must be known to the sender as well who is making crypto transactions to your wallet.

Blockchain wallet security is ensured to a greater level and regulated by mnemonic seeds, passwords, and other security methods as well.

Blockchain wallet fees are another term to be understood. It is the fees charged per transaction. High-end computers, known as miners, work with highly charged transactions. If the customer sets a low wallet fee, the transactions might be delayed or canceled as the miners are not financially profitable.

bitcoin hot wallet

Image Source: canva.com

Benefits of Blockchain Wallets

Handling cryptocurrency is the major task of cryptocurrency investment. Blockchain wallets have aided in finding a solution to that. This blockchain technology ensures the security of crypto assets. You still might think of reasons to use blockchain wallets, so we have a few for you to understand….

Why do we need Blockchain wallets?

  • Versatile Cryptocurrency Holder: There is a huge range of cryptocurrencies that is to be stored somewhere. A proper solution to that is a bitcoin wallet. Different kinds of currencies can easily be transacted completely and gathered to a single pivot in these wallets.
  • Easy and Hassle-Free: Bitcoin wallets are way too convenient and user-friendly. You can easily use the apps and have 24/7 access to your crypto assets. No such hassle of receiving and conversion of cryptocurrency is to be made in the bitcoin wallets. However, you are allowed to hold cryptocurrency of your own choice.
  • Security for the Long Term: Since many people are still not aware of the cryptocurrency protocols. They are not sure whether to trust the provider or not. The blockchain wallets ensure that the transactions are fully encrypted, with extremely fewer chances of online thefts and hacking as there are double checks, receipts, and no intermediate party. Security of the assets in the long run with the factor of reliability proves blockchain wallets to be very successful.
  • Faster and Cheaper: Cryptocurrency transactions are generally slow when transferred by the banks. Recipients and senders are also charged while making the transactions. Therefore, blockchain wallets are here to sort it all out for you. It is not just fast but a cheap way to maintain and hold your bitcoin balance.
  • Decentralization: Bitcoin wallets are completely decentralized. No third party, including the bank or the government, is involved in cryptocurrency’s transaction methods. Know that your assets belong to you only, and you must have a hold over them. No one is going to ask about your personal data, and you can easily run the crypto business being safe with the aid of blockchain wallets.

Are Blockchain Wallets Safe to Use for Users?

Is it safe to use a blockchain wallet? The safety of the blockchain wallets is completely in your hands. As discussed earlier, there remain some private keys and public keys when you hold a blockchain wallet. 

Private keys are like your account passwords that are not to be told by anyone and put a lock to your account, keeping it safe. At the same time, public keys are like your bank account numbers which are to be told by the senders to make the transactions to your account. 

As long as you hold back your private keys and keep their access to yourself, you are risk-free and completely safe with your crypto assets. This prevents you from being financially sabotaged, hacked, or manipulated as well. Such blockchain wallets in which the user lets anyone directly control the private keys for their funds are called custodial wallets.

You can learn here all about Blockchain, the beginner guide.

Conclusion

If you are a beginner being less technology savvy, or even a pro at managing your crypto assets, blockchain wallets will always give more and not less. Are you still wondering why we need blockchain wallets? They provide ease and faculty to hold your assets and make it highly feasible to get involved in the cryptocurrency business, ensuring success.

Also, if you have some spare minutes, please read my other article, What Are NFTs? All That You Need to Know.

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