The Nerd Side Of Life

Understanding the concept of a Desktop Wallet – What is it, and how does it work?

A desktop wallet is essentially a device or a program allowing you to store different cryptocurrencies. Such wallets also enable the transfer of digital currencies to other wallets. 

All crypto wallets have a Bitcoin Investment key linked to them which allows you to access them virtually from anywhere you wish. Different kinds of desktop crypto wallets are available in the market, such as paper wallets, software wallets, and hardware wallets. 

As cryptocurrencies are not physical items containing mass and matter, you can’t just store them in your pocket or a bank locker. Instead, these currencies can be stored in crypto wallets which serve as your virtual bank. 

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Crypto wallets essentially serve as your virtual station where you can safely store valuable assets for future use. Since the cryptocurrency revolution’s onset, these wallets have become widely popular with modern investors. Before you choose a wallet, you need to check the safety features of such wallets. For example, app-based crypto wallets or hot wallets can be hacked by the cybercriminals, and you can avoid such threats by using a desktop or cold wallet. 

What is a desktop wallet? 

A cryptocurrency wallet that allows users to store and use different kinds of cryptocurrencies such as Bitcoin and Ethereumis known as a Blockchain or desktop wallet. All the transactions are secure and lightning-fast. Such wallets have two types of keys, public and private. But, these wallets are not 100% safe as your keys can be hacked when you connect your device with the internet. To avoid such issues, you must use anti-virus software in your machine or desktop. 

The public ones serve as addresses for your wallet for other people to send you cryptocurrencies. The private one is only for your use and is meant to represent your password for when you need to log in to your account. Finally, a Blockchain ID is linked to your wallet address which tracks all your transactions. Make sure, you must keep your private keys in a safe place and do not share your private keys with anyone. If you want to receive cryptocurrencies then you can share your public keys or QU code available on your wallet with a user. 

How do these wallets work? 

A Blockchain network could be considered a public ledger where all the activity is stored and processed. They contain information such as the balances in different wallets and the key holder to each of them. When we say that your cryptocurrency is stored in the wallet, we don’t mean it literally. The currency just simply exists on that particular Blockchain for a while. 

The public key serves as your public domain allowing other users to send you coins directly into your wallet. In comparison, your private key allows you and only you to see how many and what kind of cryptocurrencies your wallet has in it. One needs to access their wallets with their private key in order to transfer coins to any other user. 

Features of a Blockchain wallet: 

  • Security: these wallets are highly secured using cryptography algorithms to protect your account. Only through a private key can you decrypt the information stored in them. 
  • Low fees: one of the biggest reasons why users prefer to use cryptocurrencies is because of the low transaction fees offered by them. They charge a negligible amount on each transaction as their working fee. 
  • Instant transactions: Blockchain transactions are hassle-free and instant. You can swiftly send or receive coins no matter where you are on earth if you possess an internet connection. 
  • Ease of access: these wallets are super easy to use. The user interface is customer friendly and helps you navigate through the steps involved.  
  • Transactions across different currencies: a Blockchain wallet enables you to perform transactions across different types of currencies, making the conversion process simple and easy. 

Hardware wallets are usually built for maximum security, whereas software wallets are built for convenience. Desktop wallets are easy to easy and highly secure, making them an excellent tool for everyday users. One can register and make a Blockchain wallet in the app easily. 

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