Best Cryptocurrency Wallets - Page 8

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Researched and written by Brandon Summers-Miller

Cryptocurrency wallets are used for securely storing and managing digital assets and cryptocurrencies. These digital wallets interact with various blockchain platforms, enabling users to send or receive cryptocurrency and monitor their balance.

While some crypto wallets only support a single cryptocurrency, many are multi-asset solutions, allowing users to hold multiple cryptocurrencies, like Bitcoin (BTC), Ethereum (ETH), and Litecoin.

The digital currency and assets aren’t physically stored in the crypto wallet; they live on the blockchain. Instead, the wallet stores cryptographic keys (public and private) and uses them to access the holdings and sign off on transactions.

Public keys are segments of digital code attached to a decentralized blockchain, similar to a bank account number. They are used to send or receive cryptocurrency into a wallet. Private keys are also digital codes but are unique to an individual’s crypto wallet, similar to an ATM PIN code. They are used to verify transactions and prove the ownership of a blockchain address, or in other words, unlock and access the cryptocurrencies.

Public keys can be shared with others; private keys should never be disclosed. Some crypto wallets, like hardware wallets, store private keys offline, minimizing the risk of online attacks.

To qualify for inclusion in the Cryptocurrency Wallet category, a product must:

• Allow users to store private keys associated with a blockchain ledger
• Provide a way to interface with said blockchains to store, send, and receive cryptocurrencies, as well as monitor balances
• Offer security measures to ensure private keys are only accessed by owners of the blockchain assets