What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a program that holds private and public keys and interacts with various blockchain to enable users to send and receive digital currency. If you want to use Bitcoin or any other cryptocurrency, you’ll need to have your own digital wallet.

When someone sends you bitcoins or any other type of digital currency, they are basically signing off the coins to your wallet’s address. To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to.

If public and private keys match then the senders balance will decrease and yours increases!

There is no actual exchange of real coins. The whole thing is recorded on blockchain (numerous masternodes specifically) and then your balance will be changed.

There are a several types of Cryptocurrency wallets:

Desktop

Downloaded onto your computer, making it only accessible from the one place. Offers one of the highest securities but redundant if you computer is infected.

Online

Stored online controlled by third party, being a lot more convenient to access but also means the same for hackers. Please check your online wallet as each exchange has a different wallet platform.

Mobile

These mobile wallets are starting to trend in the UK and US, allowing payments in form of cryptocurrency. As they are in early stages still, be prepared for quite a few bugs.

Paper

The term paper wallet can simply refer to a physical copy or printout of your public and private keys. This is the best security following hardware wallets, but is a bit trickier to use each time to access funds. Even though paper wallets mean hackers cannot access your funds offline; this does not apply for when you load your wallet onto your device to transfer in/out funds.

Hardware (personal favourite)

They differ from software wallets in that they store a user’s private keys on a hardware device like a USB. They still need to make transactions online, but they are still stored offline; increasing security.

You can plug it into multiple devices (computers, phones and tablets), type in your pin and start transferring!

I personally use a Trezor and Nano Ledger S just for my peace in mind.

For hardware wallets go to:
https://www.coinstop.com.au/product-page/ledger-nano-s $119 AUD
https://www.coinstop.com.au/product-page/ledger-blue $385 AUD
https://www.coinstop.com.au/product-page/trezor $170 AUD

Are cryptocurrency wallets secure?

Each digital currency has their own kind of wallets, with their own levels of security and bugs that could be potentially exploited.
If you want to store online for exchanges, make sure they provide their own multi-currency wallet for you with basic Two-Factor Authentication (2FA) security systems. Please do not store any value on any online wallet that does not let you have 2FA security.
Unlike with other systems we are used to, once the transaction goes through.....
THERE IS NO WAY TO REVERSE IT!!!!
ALWAYS DOUBLE CHECK the addresses and coin you send to!!!!

For other individual cryptocurrency-wallets explanations go to:
https://steemit.com/bitcoin/@heiditravels/how-to-buy-bitcoin-with-your-local-fiat-currency-plus-an-awesome-guide-for-many-crypto-wallets
For great wallet guides and some further studies into blockchain technology; visit @heiditravels at:
https://steemit.com/@heiditravels

What is Ethereum?

Ethereum is an open-source, public, blockchain-based distributed computing platform featuring smart contract functionality. Why is it special and being mentioned?

ETH (Ethereum) has a unique feature about its blockchain that it can hand form smart contracts or tokens that can be transferred or traded.

Ethereum is a unique blockchain of its own, most wallets use MyEtherWallet as a portal to access your funds, even all hardware wallets.

What is ERC20?

Using Ethereum’s smart contract system, ERC20 represent something what we see as a IOU(I owe you) vouchers that can be transferred around and sold on markets. The main difference about the ERC20 token is that they piggyback on the Ethereum network, hosted by Ethereum addresses and sent by Ethereum transactions.

Many currencies on the market currently are ERC20 tokens. such as AdToken, Aragon and Monaco just to name a few.

For ETH, ETC (Ethereum Classic) or any ERC20 I would ALWAYS recommend using MyEtherWallet.




For a fantastic explanation on how to use MyEtherWallet with tips and tricks go to:
https://steemit.com/cryptocurrency/@heiditravels/how-to-use-myetherwallet-tips-and-tricks

CryptoZen's Guide to Cryptocurrency

Pt. 1: How to Buy Bitcoin and other cryptocurrencies
https://steemit.com/bitcoin/@zen-analyst/pt-1-how-to-buy-bitcoin-and-other-cryptocurrencies-australia

PT. 2 The Guide to "Bitcoin" and Cryptocurrency Exchanges
https://steemit.com/bitcoin/@zen-analyst/pt-2-the-bitcoin-cryptocurrency-exchanges-recommendations

Pt. 4 Transferring cryptocurrency from wallet to wallet
https://steemit.com/bitcoin/@zen-analyst/pt-4-transferring-cryptocurrency-from-wallet-to-wallet

Pt. 5 Trading cryptocurrencies
COMING SOON!

Am I missing any other good recommendations for us Aussies?
Let me know!

Merry Christmas and Happy new year everyone!

CryptoZen