A crypto wallet or a bitcoin wallet is a way to collect various types of cryptocurrencies such as bitcoin, dogecoin and ethereum. These currencies are protected by the use of public and private keys that are collected through wallets. A crypto wallet is a software or an application on a mobile device where one can collect digital currencies, and sell or buy bitcoin or other cryptocurrencies. The crypto wallet can also be used to digitally sign transactions. These wallets are typically password protected.
Types of crypto wallets: [1]
1. Desktop wallets[2] : These can be installed & used on a laptop or desktop and can be used from the single device on which it was first downloaded. It gives the user complete command over the wallet. These wallets are commonly safe except in the event of hacking or virus attacks on the computer.
2. Mobile wallets[3] : These can be installed & used on a mobile device through an app. It can be used to pay quickly at various stores through a QR code scanner or NFC. There have been various instances of malware practises against such wallets; hence it is reasonable to research sharply before choosing which one to use.
3. Web Wallets[4] : These are also known as virtual wallets. One of the major benefits of a web wallet is that it can be used from any device, any place without any limit. It is very easy to use. Security is one of the major concerns of this wallet as it is permeable to theft or hacking attacks as it is indirectly managed by a third person.
4. Hardware wallets[5] : These are slightly different from desktop wallet, mobile wallet, and web wallet as all three are software wallets. Hardware wallets don’t collect the private key of the user online but collect and store such private keys on a physical device such as a USB that cannot use the internet. These wallets have durable safety controls and thefts or hacking attacks are very rare. When the user wants to buy bitcoin or sell bitcoin on their laptop, they need to plug in the hardware wallet, which will authorise the transaction without any security issue.
5. Paper Wallets[6] : These wallets are simple to use & are largely secure. The public keys and private keys will be generated by the software automatically. For transferring the funds on the paper wallet, users have to scan the QR code or enter their private keys.
Features of crypto wallets:[7] Some of the features of crypto wallets are as follows:
- Quick and easy way to do a transaction in digital currencies
- Auto logout session after the completion of a transaction to protect any unauthorised use
- Security features like pin and password are available
- Users can access transaction history to see their expenses and incomes
- The facility of QR code scanner for easy and fast transactions
- Auto rejection of duplicate payments to protect frauds
How to set up crypto wallets?[8]
There are various digital wallets that a user can find online. Cryptocurrency exchanges in India also have their wallets. ZebPay is one of the popular suppliers of crypto wallets. Setting up and using these wallets are very simple.
The steps to set up a crypto wallet are:
- Research and determine which type of wallet you want to use
- Download the wallet of your choice.
- Install the required software. After installing the software, create the account and set up the security features.
- Log in to the account and follow the instructions on the screen to perform the transaction.
