S4B Crypto Contest - Season 5

Hi everyone,
It's another day of the week and I'm delighted to participate in this contest today organized by @waqarahmadshah which talks about S4B Crypto Contest - Season 5. I will be making my entry below so read through it and drop your valuable comment as it will be appreciated.

Source

What is a crypto wallet?

A crypto wallet is a digital or online wallet that helps to store your cryptocurrency and also your private key allowing you to have access to your asset to trade, send and receive.

A wallet houses the digital asset we have which can be traded and then converted into fiat so that we can easily exchange it for goods and services.

So this crypto wallet holds the different types of coins we have and it also holds the private key which aids the transaction within the wallet.

What are the different types of crypto wallets?

Crypto wallets are numerous but the ones I'm most familiar with are the hardware and the software wallet, the cold and the hot wallet, and lastly the custodial and the non-custodial wallet. There may be more but these few are the only ones I know about and that is why I share it with you all today.

The different wallets have their different security feature which distinguishes them from the others. So the security features are some of the main reason why someone choose which wallet to use.

Why do you need a crypto wallet?

I need a crypto wallet because it is the only means that I can use to store my assets. A crypto wallet is like an intermediary between your assets and you. Without a crypto wallet, we won't have a place to store our assets because even the exchanges have assets stored in the.

Source

So a crypto wallet is a place where you keep your asset and trade it if the need arises. Trading your asset involves sending and receiving i.e. buying and selling.

You can't do that if you don't have a place where this asset is kept. Since it is a digital asset, the wallet is also a digital one because you can not touch the asset but you see its value represented.

What is the purpose of a private key in a crypto wallet?

The purpose of the private key in your crypto wallet is to authorize the transaction within the wallet. This means that without the private key, no transaction can take place within the wallet.

We send and receive assets in the wallet and possibly trade assets. A good case study is the Steemit wallet where you transfer out Steem, convert SBD to Steem, and so on. When you wish to carry out any of the above operations, you must use the private key.

So the private key is the gateway to a successful transaction within the wallet. No private key no transaction. This is the reason it is said that anyone with a private key is the owner of the asset.

I want to invite @bonaventure24, @dave-hanny, and @okere-blessing to join the contest.