Farid Md has commented "very helpful, thanks.."
Humans have come a long way from barter trading (trading goods without using the money) to gold, then later to paper currency and now we have arrived in the age of digital currency.
There are more than 2000 cryptocurrencies in the world with a market capitalization of around $175 billion, it is necessary to know about them. Where these currencies are stored? How does the crypto wallet work? If You are still reading this, it says you are a beginner and want to explore the crypto world.
To understand the crypto concept, first, know about the crypto wallets.
What Is a Cryptocurrency Wallet?
A cryptocurrency wallet is a software program that stores private and public keys and interacts with different blockchain so that users can send and receive digital currency and track their balance. There is a need to have a digital wallet if you want to use Bitcoin or some other crypto-currency.
A crypto wallet is a platform you can use to communicate with a network of blockchains. There are different forms of crypto wallets that can be split into three groups: software, hardware, and paper wallets. They can also be referred to as hot or cold wallets, depending upon their working mechanisms.
What Are Public & Private Keys?
A public key is a unique identifier for a person and a private key is like a password similar to an ATM pin. A sender will require the public key of the receiver to send him the cryptocurrency and the receiver will be able to access and use these cryptocurrencies by using the private key. A private key must be protected in order to avoid fraudulent activities such as hacking, stealing of cryptocurrencies, etc.
A public key can be extracted from a private key, but a private key can never be extracted from a public key.
A private key should always be kept safe. Exposing it would be vulnerable for various hacks and stealing of the coins by with whom you have shared. sending them to another wallet which they control.
Example of a private key:
N2nGYRCBbs6ZRs8w5LHam4r85ikxBzhRNgpNJjqk7D5vrpuaVJB
Example of a public key:
958ikZuaAbGkzXuFL9sfGHYj9ethop8qMh
How Does a Cryptocurrency Wallet Work?
Study More: https://coinpedia.org/information/
