How crypto Wallets and Exchanges work

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Some days back, I talked about crypto Wallets and exchanges, their examples, advantages and disadvantages. How does these wallets and exchanges work? If one doesn't know how it's operated, one can't go about using it or will end loosing funds or even losing the created wallet. I'll first deliberate on how crypto Wallets work before venturing into exchanges.

Every created Crypto wallet has a pair of cryptographic keys which are the public and private key used for various purposes. The public key is used as an address to send cryptocurrencies to the wallet while the private key is an address that gives users full control and access of their funds that's why the private key is more important than the public key and should be protected at all cost. Before creating a wallet;

• Decide on the type of wallet you want to use as there are various types of wallets to choose from.

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• Before using it, you need to setup where necessary and when using it, users can send and receive cryptocurrencies by signing all transactions with their private key. This is similar to how steemit works. Before a transaction is validation on steemit, the private active key must be used.

Wallets keep track of our balances and transactions carried out are recorded. Users are always advised not to share their private key with anyone. It should be safeguarded because that key serves as access to your funds. If you loose your private posting key and master key on steemit, you end up losing your account and funds there as you won't be able to access it. ...

A crypto wallet serves as a tool that safeguards management and access of cryptocurrencies using cryptographic keys like the public and private key.

Steemit wallet is a typical example of a crypto wallet operated online. This steemit wallet is used to store cryptocurrencies we receive from the platform like the steems and trons. These trons and steems are kept safe in our wallet so far as our keys are intact with us.....

Crypto exchanges differs slightly from wallets in terms of how they work. Before Creating an account on an exchange, one must choose a reputable exchange platform and also complete certain verification processes as required.

• Depositing of funds in any cryptocurrency is done on exchanges and you can trade with these cryptocurrencies like converting 30 steems to $5.

• Placing orders such as market orders or limit orders at a specific price is done on exchanges

• Buying and selling of cryptocurrencies is also done on exchanges.

• You can use the addresses or memo and account name in steem coin in receiving steems. Receiving of cryptocurrencies doesn't require one means like the wallet. These exchanges work in various aspects which includes, registration, placing orders, Depositing funds, monitoring and executing trades, and withdrawing funds.

In conclusion, wallet and exchanges work differently and should be protected at all cost to prevent lost of funds.

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Disclaimer: Any financial and crypto market information provided in this post was written for informational purposes only and does not constitute 100% investment advice. It's just basic knowledge every crypto trader or investor should have.