Important Types Of Cryptocurrency Wallet You Should Know #004

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I am here again friends and I continue to go by the name Jueco.

I believe you are all doing great today, it is another beautiful day and I am here as usual to discuss a matter of great importance to you all.

I have been taking my time to discuss with you all on the different types of cryptocurrency wallet we have and I want to believe that it has been beneficiary to you all.

Today, we shall continue from our last discussion on the types of cryptocurrency wallet we have, please follow along as we embark on this journey:

• OFFLINE WALLET:

An offline wallet which is also referred to as a cold storage wallet can be explained to be a type of cryptocurrency wallet that is used to store cryptocurrency offline, away from potential online threats.

This type of wallet helps to supply an added layer of security to your assets by keeping them totally disconnected from the internet.

One of the main reasons an offline wallet is created is so as to securely store your cryptocurrency by keeping your private keys away from the internet.

By making use of an offline wallet, you can generate your private keys and wallet address while the device is offline, and this address can also receive funds while the device is offline.

When a transaction is about to be made using your private keys, these transactions are usually signed offline and then later broadcasted to the network using a different device that is connected online without the presence of the private keys.

• ONLINE WALLET:

An online wallet which is sometimes known to be an e-wallet can be explained to be a virtual storage space which gives users the room to store and manage their cryptocurrencies.

Online wallet usually serve as a centralized platform for users to store, access and control their cryptocurrency over the internet.

They help to provide a very friendly user interface and encryption mechanism to guarantee security of sensitive information.

To make use of an online wallet, users need to create account and to create account, users need to sign up by providing some personal information, like their names, phone number, email etc. Then the user has to proceed to set up some security measures for their funds such as the 2FA.

• ENCRYPTED WALLET:

An encrypted wallet can be explained to be a software application that helps to securely store cryptographic keys such as private keys used in the authorization of financial transactions.

An encrypted wallet is created to give a high level of security by encrypting the sensitive information found in the wallet.

In the situation of cryptocurrencies, the encrypted wallet ensures the protection of private keys against theft unauthorized individuals.

The process of encryption usually involves the use of cryptographic algorithm to convert the private keys into a complex unreadable format.

When an encrypted wallet is created by a users, a set of cryptographic keys are generated which contains the private keys and the public keys.

The private keys should never be shared with a second eye as it possesses full control over the funds in an account.

The public keys on the other hand can be shared as it is needed to receive funds into the account, it serves as the wallet address to an account.