S4B Crypto Contest - Season 5

in hive-109435 •  7 months ago 

HELLO FRIENDS WELCOME TO MY ENTRY.


What is a crypto wallet?

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A crypto wallet is a platform, service provider, hardware, or software that provides us with the functionalities so we can be able to store or hold our cryptocurrency.

The crypto wallet enables us to store our cryptocurrency just as the way our traditional banks enable us to store our money.

Some crypto wallet comes with features that allow time to store, send, and receive cryptocurrency, whereas some have features such as buying and selling cryptocurrency. A crypto wallet provides users with private and public keys for storing cryptocurrency.


What are the different types of crypto wallets?

Hot wallet and Cold Wallet are the two types of crypto wallet that I know. Hoe Wallet is the type of crypto wallet that is connected to the internet, whereas cold wallet is the type of wallet that can be accessed without the use of the internet.

The cold wallet is subdivided into two which are:
Hardware wallets and Paper wallets In hardware wallets users' private keys are stored on physical devices such as USB drives. Whereas Paper wallets Users can only write down or copy and store their private key and public key on paper.

As for the hot wallets it is subdivided into three categories:

  • Online web wallet.
  • Mobile Wallets
  • Desktop wallets.

Why do you need a crypto wallet?

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I need a crypto wallet so I can be able to store my cryptocurrencies in a place that I feel is safer for me. Having a crypto wallet would protect my digital assets from being hacked by hackers than me using a crypto exchange.

A crypto wallet is more secure than a crypto exchange. However, a crypto wallet has fewer features as compared to a crypto exchange but it is more secure than a crypto exchange which is why I need a crypto wallet to protect my digital assets.

Also, the main advantage of a crypto wallet is to allow us to hold our cryptocurrency and participate in web3 projects which without having a crypto wallet I wouldn't be able to participate in a web3 project that likes.


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

The purpose of a private key in a crypto wallet is to ensure the safety of your account which means without you who have access to the private no one else can have access to your account.

Private keys protect our account from getting back which is a numerical number that cannot be guessed or hacked, unlike passwords that can be hacked.

I am inviting @entity01, @ebeke, and @bonaventure24

Cc:- @waqarahmadshah

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