Crypto isn’t a brand new concept anymore, it has been around for some time and people are becoming more used to the language involved. That said, a lot of people still don’t really understand some of the aspects like crypto wallets and how they store the money.

Getting to grips with these kinds of terms is really important for people who are considering making a switch from traditional currency to cryptocurrencies. We’re looking at the uses of these wallets in this guide as well as how they actually work. People may also have different types of wallets including software and hardware so there are different ways to do things.

A wallet serves as the gateway between the user and the blockchain, for the secure storage and management of digital assets (including NFTs as well as cryptocurrencies in some cases).

Growth of Crypto and Crypto Wallets

Cryptocurrencies are used for a variety of things and while historically there is a focus on investing and holding, crypto is being used in day-to-day life more than ever. The gambling industry has helped cryptocurrencies (and vice-versa). Some studies show that more Bitcoin transactions take place in the realm of gambling than any other industry so it shows that the two industries are linked. Thunderpick has pushed things forward and is a way for people to use crypto rather than just hold it in a wallet.

Cryptocurrencies are also used for prize funds in some of the biggest games in the world. Esports and its popularity have helped to push things forward and get more popularity for cryptocurrencies. Some tournaments in games like Valorant even give out their prizes in cryptocurrencies so people need to use a wallet to receive their funds if they win. Esports like this are always changing and it is crucial for players to be on top of how they have grown, including new updates in the games themselves and payment methods.

Gambling on esports like Valorant also helps to drive the cryptocurrencies forward and grow their popularity as a lot of the biggest esports gambling companies provide markets for this game, another reason why people need to be up to date with the game and the industry.

Crypto Wallets Explained

A crypto wallet doesn’t store the currency itself. Instead, it holds the private keys that allow the user to access their digital assets on the blockchain.

Blockchain technology has given us a lot of things to get to grips with as a population but one of these things is the concept of a wallet and private keys. These private keys are essentially long strings of alphanumeric characters that serve as the user’s unique identifier on the blockchain.

Most people know already that Bitcoin is the most famous and considered the “OG” cryptocurrency by some. It has continued to grow since its launch but it does need the addition of crypto wallets to allow people to use the currency properly.

The next decision after which crypto is being used is which type of wallet to use – there are hardware wallets and software wallets for people to choose between.

Hardware Wallets

Hardware wallets are often considered the gold standard in crypto security and people like the security offered (plus they look like cool little devices that might be used in a sci-fi film!) These devices are physical objects, often resembling a USB stick, that store private keys offline. Because they are not connected to the internet, they are immune to hacking attempts, making them one of the safest ways to store cryptocurrency. However, the physical nature of these wallets means that they can be lost or damaged, potentially putting the stored assets at risk (though there are some fail safes in place).

Software Wallets

These work in a different way – they are applications that run on a computer or mobile device. They store private keys electronically and provide an interface for managing transactions. Software wallets offer greater convenience compared to hardware wallets, as they allow users to quickly access and manage their cryptocurrencies.

People should compare and contrast the different methods to see what works for them. Some people would always rather use cryptocurrencies like Bitcoin as this is the most popular and has the highest market cap, but wallets can sometimes contain multiple different cryptos.

Conclusion

Wallets are different when it comes to crypto. When you think of a wallet, you think of a leather device for storing cash, but this isn’t so important in the modern age! The idea that a wallet can be software definitely feels like the plot of an old science fiction book, but it is the world we are living in. Crypto’s extra security is one of the reasons why it has grown so much and a reliable wallet needs to be part of that to keep peoples’ funds safe.