OneArt

Unlike a physical wallet holding coins and paper banknotes, a crypto wallet does not keep digital money. Then, what is a crypto wallet for and how does it work? Indeed, a crypto wallet has nothing to do with storing cryptocurrency as such. It is used to store the keys to that currency. Coins are held on the blockchain. Now let&#39;s talk about it in order.<h2 id="header-0">What is a cryptocurrency wallet?</h2>It is software or hardware that stores keys (public and private). Technically, it is an interface for &#34;connecting&#34; your cryptocurrency stored on the blockchain, and the keys associated with your wallet.<blockquote>&#x1f4da;Curious fact: Crypto never leaves the blockchain. Even when burned, the coins don&#39;t disappear. <a href="https://oneart.digital/en/blog/8-crazy-things-you-should-know-about-crypto-wallets" rel="noopener noreferrer nofollow">Here</a> are some more crazy facts about crypto.</blockquote><h3 id="what-cryptocurrency-wallets-are-there">What cryptocurrency wallets are there?</h3>A wallet can be in the form of:<ul><li>A mobile app</li><li>A desktop app</li><li>A wallet in your exchange account</li><li>In the form of a flash drive or a piece of paper.</li></ul>They all have the primary function — to store your keys. For what? So you can receive, send, exchange cryptocurrency, and prove that these are your assets.In this process, it is necessary to give credit to the public key and the private key as the main elements of a wallet. The first is used as your bank account: can be shared with anyone. The second is used as your digital signature or, in other words, your bank account password: never share the key with anyone.<blockquote>You can find out more about the importance of keeping your private key safely <a href="https://oneart.digital/en/blog/what-is-a-private-key" rel="noopener noreferrer nofollow">here</a>.</blockquote><img src="https://academy-public.coinmarketcap.com/optimized-uploads/6749981a400c48e8aca9c50e7b9a9f17.jpeg" />Operating together, the private key and the public key ensure secure transactions. A record of all transactions, balance data, and any such financial information is stored on the blockchain.There is also such a component of a wallet as an address. Each address on the blockchain contains certain transaction data. Your wallet address is, roughly speaking, a certain place on the blockchain for sending and receiving crypto. The address can be shared with anyone. However, remember that your address is traceable. Don&#39;t worry, this is normal because that&#39;s how the blockchain works.<blockquote>&#x1f4da;Curious fact: When coins are sent or received, they simply change &#34;place&#34; (aka address) on the blockchain.</blockquote><h2 id="header-1">Blockchain: explanation in a nutshell</h2>Blockchain is a database in which transaction data specific to a given address is stored in so-called &#34;blocks&#34;. The data, which exists as blocks, cannot be changed. This makes blockchain immutable.&#x1f447;Here&#39;s more about how a block is formed and added to the blockchain when a new transaction (new information) occurs.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/86c1788d1142412ba096f161b3a5e88d.png" />Blockchain &#61; Distributed Ledger Technology (DLT). It means that data is not kept in one silo. Besides, it is validated by multiple nodes (aka computers). This makes blockchain technology decentralized and distributed.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/38e5907fc7cb4406a8cb510789104731.png" />Ok, what&#39;s going on with your crypto? Nothing special: digital coins are always on the blockchain, or more precisely, in a certain place on the blockchain (address). The fact that this address is yours is confirmed by the private key stored in your wallet. Therefore, how do crypto wallets work? It turns out that a wallet — as an interface —  functions as a connector for interacting with balances kept on the blockchain.<h2 id="header-2">Finally: wallet-related questions that you may be interested in</h2><ol><li>Which wallet to choose?</li></ol>It all depends on your goals:<ul><li>If you store large sums, it is better to choose a cold wallet (has no access to the Internet). Such a wallet can be in the form of a flash drive, for example.</li><li>If convenience is more vital, it is preferable to opt for a mobile wallet. However, for increased security along with usability, it is better to select non-custodial mobile wallets.</li></ul><img src="https://academy-public.coinmarketcap.com/optimized-uploads/44ffe9546ad541bcb7383e30e9654bd3.png" />2. Do all crypto wallets have fees?Using a mobile crypto wallet, for example, does not require you to pay a fee, because it is primarily a storage tool. There is no fee for storage.The commission is usually typical for exchanges, which may also offer a wallet (it&#39;s often your account on the exchange). Also, a fee may be charged when making a transaction, especially on exchanges. The amount of fee depends on the service provider.3. Сan someone steal my crypto with my wallet address?Your address can only be used to track your transaction history. To steal crypto one needs your private key. Thus, keep your private key in a safe place and don&#39;t share it with anyone.4. Can I have more than one wallet?Even desirable. There are several reasons to have <a href="https://oneart.digital/en/blog/should-i-have-multiple-crypto-wallets" rel="noopener noreferrer nofollow">more than one wallet</a>:<ul><li>To distribute a significant amount of coins to different wallets. This way, you can reduce the risk of stealing/losing the entire amount at once.</li><li>Some wallets support only a certain type of coin. If you purchase another, you need to start a wallet that supports that coin.</li><li>And, as mentioned above, cold wallets are ideal for storage only. Mobile wallets, for example, have advanced features (sending and receiving crypto, swap, storing both currencies and NFTs, analytics, etc.).</li></ul><h3 id="follow-official-oneart-channels-to-find-the-latest-info-and-updates">Follow official OneArt channels to find the latest info and updates:</h3><ul><li><a href="https://twitter.com/art_wallet" rel="noopener noreferrer nofollow">Twitter</a></li><li><a href="https://t.me/art_wallet" rel="noopener noreferrer nofollow">Telegram Group</a></li><li><a href="https://t.me/artwallet_official" rel="noopener noreferrer nofollow">Telegram Announcements</a></li><li><a href="https://coinmarketcap.com/community/profile/OneArt" rel="noopener noreferrer nofollow">CoinMarketCap Community</a></li><li><a href="https://www.linkedin.com/company/oneart/" rel="noopener noreferrer nofollow">LinkedIn</a></li></ul>

How does a crypto wallet work

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