Important Types Of Cryptocurrency Wallet You Should Know

jueco (76)in Tron Fan Club • last year

Hello crypto friends,

I believe you are all doing great and fine and are enjoying your activities in this community.

It is another beautiful day and I am here to continue the discussion we had the last time we met on the types of wallet we have.

It is very important to analyze various types of wallet so as to enable users pick the most suitable and be ready for whatever consequences that comes from it.

Today, we shall focus solely on the different types of cryptocurrency wallets available.

BRAIN WALLET:

A brain wallet can be explained to be a type of wallet whereby funds can be stored and accessed using only the memorized phrase/key in your brain.

This implies that the only way to access any fund stored in a brain wallet is by making use of the phrase you have stored in your brain.

Inorder to create a brain wallet, you need to create a unique key/phrase that will be easy for you to remember and difficult for others to guess .

This key/phrase can be a combination of numbers, letters, symbols, but make sure that it is lengthy so that it does not become easily guessed.

One advantage of the brain wallet is that it gives you full control over your account and you do not need to depend on any other wallet to access your funds.

MULTISIGNATURE WALLET:

As the name implies, this is a type of wallet that requires the use of multiple signature to validate it's transactions.

The method of operation of this wallet helps to provided an added layer of security by involving different parties in the approval of a transaction.

Unlike the traditional cryptocurrency wallet where a single private key is used to access funds and authorize transactions, the multisig wallet distribute the control of funds over different private keys which is under the custody of different users.

These users are who we refer to as "cosigners".

Before a transaction can be validated using a multisig wallet, a predetermined number of cosigners must present their signature to authorize the validation of the transaction.

The amount of cosigners needed might be as low as 2 and as high as agreed by the team, depending on the number of trust the team has on one another.

FULL NODE WALLET:

A full node wallet can be explained to be a type of cryptocurrency wallet that function as a complete copy of a blockchain network.

In a blockchain network such as ethereum, a full node wallet refers to the computers that maintain and stores a complete copy of the blockchain, including the network rules and transaction history.

A full node wallet independently validated and verifies transaction on a blockchain hereby providing a higher level of security to the blockchain