What is a crypto wallet?

1. What is a crypto wallet ?

A crypto wallet is software that allows you to send and receive cryptocurrencies (such as bitcoin ).

They can be used to store several tokens and coins at once – however, keep in mind that most wallets only support a limited number of cryptocurrencies.

Portfolios are used to store so-called “private keys” – long hexadecimal codes known only to you and your portfolio. They must match a public key in order to use your assets.

There are many types of wallets available. They can be stored on a hardware device, you need to connect to the network to make transactions (some people keep them in cash desks the rest of the time). You can even save your private keys on a piece of paper, which is one of the methods of “cold storage.” (a term used for offline cryptocurrency browsing).

What is an online crypto wallet?

Online portfolios are close to traditional banking applications. You can access your balance on multiple devices and don’t lose them forever if you lose your phone or forget your password.

2. So what are the steps to create a crypto wallet?

First, think about how you want to access your wallet.

Will you use a cell phone? A desktop computer? Do you want to log in through a website or use hardware that stores your keys offline? It is important to keep in mind that some portfolios do not work on all platforms.

Then determine if the portfolio you are planning to use supports the cryptocurrencies you invest in – and make sure it is reliable and secure.

Most wallet providers offer guidance on how to use their application and the process is not much different than creating an email address. It is also advisable to back up your personal key and keep it in a safe place.

3. Can owning a crypto portfolio create problems for me in the country where I live?

Some countries have imposed restrictions on the use of cryptocurrency – others have warned that regulations will soon be imposed.

Bitcoin is banned in Pakistan, Nepal, Algeria, Cambodia and Bolivia – and it is illegal to pay with Bitcoin in countries like Macedonia, Vietnam and Bangladesh. There are still no bans for buying and mining Bitcoin or other cryptocurrencies in Bulgaria

4. If the company knows my private keys, can they steal my cryptocurrency?

Third-party portfolios can be a great way to store cryptocurrency, but first you need to do a thorough research.

In theory, a company can use the private keys that you have given them to steal your funds. There have also been cases where users have been unable to withdraw funds from their portfolios, with these providers subsequently collapsing.

Look for approved portfolios that offer secure technology to protect what’s in your portfolio. Because there are many options, read reviews and explore the pros and cons of each provider – making the most informed decision possible.

5. What can I do to keep my cryptocurrency safe?

Try to use cold storage options when possible, especially if you save on cryptocurrency for rainy days. Online wallets are appropriate when you need quick and easy access to your account to make transactions.

The first tip is to be on the lookout for malware that may compromise the security of your laptop or phone.

Second, if you use an online wallet, always be careful about receiving emails claiming to be from the service provider. The real message usually contains information that only they have. Phishing emails from scammers often mimic the logo and language used by official companies. If you look carefully at their address, you may find clues like small typos or another domain, turning noreply@coineth.com into no_reply@coinneth1.io.

6. I was sent a cryptocurrency, but my wallet is empty! How long does it take?

It depends on how quickly the confirmations in the particular block of the chain will be completed.

Time can vary for different transactions and also between cryptocurrencies.

The Bitcoin standard is six confirmations before the transfer is completed, and this process may take about an hour, depending on network activity.

Other cryptocurrencies may require more confirmations, but this does not necessarily mean that the transaction will be slower. For example, although 24 Ethereum confirmations are required, transfers can be completed within minutes.

7. I had money in my account, but now I’m at zero. Where did my money go?

Your coins may be transferred to cold storage.

Some online wallet providers move funds from the billing address to cold storage to preserve the keys and personal assets of their users.

When these users want to make a payment, their assets are transferred from the cold storage to the desired payment address.

8. Will I receive new coins in case of fork split?

Forking can be used to put new coins on hosted portfolios. It may take a while for new coins to start up, and sometimes the wallet will not accept the new coins at all. 

Typically, developers behind hosted portfolios will analyze the fork whenever possible and check the new chain for suspicious behavior. If there is no evidence, the hosted portfolio is likely to start supporting the fork – and clients who already own coins will be credited with the new asset.