Though we may have heard about cryptocurrencies, it is quite possible that we may not have come across cryptocurrency wallets. When we look at sites like Tezbox or hear about Tezbox privatekey and other such things, we can be sure that they are talking about cryptocurrency wallets. Hence, in this article, our effort is to understand more about this type of wallets so that we are in a better position to understand the exact meaning, significance and important of Tezos online wallet.
What is it all about?
Put in plain and simple words, cryptocurrency wallets are a form of secure wallets that help to store, receive and send digital currencies such as bitcoins, ethereum and other such well-known cryptocurrencies. It would be pertinent to mention here that most popular cryptocurrency brands have their own wallets. The moot point is that if you want to make use of cryptocurrencies, you will need a cryptocurrency wallet. While some wallets are built for one single type of cryptocurrency, there are others that can be used for multiple types and brands of cryptocurrencies. While some wallets can be managed by yourself, there are others that are used for custodial purposes. Example of custodial cryptocurrency wallets are the ones that are found in exchanges.
How to they work?
Cryptocurrency wallets are software solutions that can be used for the purpose of viewing cryptocurrency balances and also for the purpose of making transactions. Though there could be some differences between various types of these wallets, there are a few things that are common. They will work with more than one or a single cryptocurrency. They will be capable of storing different types of public addresses that are specific to cryptocurrencies.
What exactly are public addresses? They are almost same as account numbers that are specific to different types of cryptocurrencies. They are used by cryptocurrency holders and owners to have a look at the balance in their cryptocurrency ledger accounts. It also could come in handy for moving cryptocurrency funds around to various other stakeholders. However, for this to happen you should be owner of the cryptocurrency. A cryptocurrency owner gets a private key which also known as a secret code. This is for custodial wallets. In case of non-custodial wallets, the custodian could be the exchanges who holds the key on your behalf. You must input the password to gain access to your respective wallet and then conduct transactions.