What is a Crypto Wallet?
Imagine a safe for your online money – that's a crypto wallet! It keeps your secret codes (private keys) safe so you can use and get digital money like Bitcoin or Ethereum. There are different types, like ones you plug in (hardware wallets) or ones on your phone (like Xellar Wallet). They're like easy apps for crypto, just like using your bank app!
Unlike your regular wallet that holds physical money, or your banking app which connects with the bank to display how much money you have, a crypto wallet doesn't exactly store your digital coins. Instead, they reside on something called a blockchain (a large note book stating which crypto belongs to which address). To access them, you use a passcode (private key) stored in your wallet to help unlock the ability to control your digital coins. But here's the catch: if you someone learns about your passcode, they could gain access to the control of your digital coins.a
Crypto wallets range from simple-to-use apps to more complex security solutions. The main types of wallets you can choose from include:
- Paper wallets: Keys are written on a physical medium like paper and stored in a safe place. This of course makes using your crypto harder, because as digital money it can only be used on the internet.
- Hardware wallets: Keys are stored in a thumb-drive device that is kept in a safe place and only connected to a computer when you want to use your crypto. The idea is to try to balance security and convenience.
- Online wallets: Keys are stored in an app or other software – look for one that is protected by two-step encryption. This makes sending, receiving, and using your crypto as easy as using any online bank account, payment system, or brokerage.
Each type has its tradeoffs. Paper and hardware wallets are harder for malicious users to access because they are stored offline, but they are limited in function and risk being lost or destroyed. Online wallets offered by a major exchange like Xellar Wallet are the simplest way to get started in crypto and offer a balance of security and easy access. (Because your private info is online, your protection against hackers is only as good as your wallet provider's security – so make sure you look for features like two-factor verification.)
- The main Xellar Wallet is a self-custodial wallet where the private keys are stored on your phone. This is similar to Metamask, Phantom or Coinbase wallet where they all allow you to Send, Receive and browse DeFi applications.
- Xellar Cold Wallet Card is a Physical card that abstracts the private key away from the phone and into the card. This adds an additional layer of security requiring you to tap this card on your phone through NFC technology to access the private key to enable a transaction.
Xellar is the next generation non-custodial application, integrated into the DeFi world. Download Xellar on the App Store & Play Store. Integrate with Xellar’s cold wallet technology.