How Does a Crypto Wallet Work?
Main page Analytics, Cryptocurrency
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Feb. 3, 2020

Bitcoin and other cryptocurrencies are at an all-time high. With digital currencies increased popularity, other services have also become popular and necessary. One of the first things you need to acquire is a crypto wallet or a digital assets wallet. There are many types and brands that offer the services of keeping, sending, and/or receiving digital assets, but the most popular ones are usually offered on mobile or websites. Consumers and crypto enthusiasts need to be able to exchange, save and send/receive money from a website or their phone. This is why financial platforms that host and provide these services have become more and more popular in the fintech sector.

How does a crypto wallet work?

Think of these digital wallets as an easy-to-understand view of blockchain. In essence, when a customer requests a transaction, the transaction is transmitted to the blockchain network. For the transaction to go further, it needs to go through a verification process (which sometimes changes depending on the provider). After the transaction is validated by the network, the transaction is added to the blockchain (like an entry into a ledger). Once the transaction is valid and entered into the blockchain, the transaction can no longer be altered or erased, and it becomes a part of the blockchain network. At this time, you should be able to see your completed transaction reflected in your wallet.

How to choose a crypto wallet?

It is very important to have a safe and efficient crypto wallet. Not only for fast and efficient transaction, but also to have a safe place to keep valuable assets. Some of the things to consider are safety, availability, cost, speed and features. Look through the top crypto wallets in the market and find the one that fits your needs best.

Wallet Recommendations

Coinbase is one of the most popular wallets today. They are widely known for their security features, the stability of the platform, and the insurance policy they offer. You can also connect your bank account to your Coinbase account.

This is one of the newer crypto wallets in the market, but they have a strong community. They offer security features, attentive customer service, great community, education as well as a stable platform. The platform is also known for being user-friendly and a great option for people who are new in the crypto community. Bitfoliex is working on multiple projects for 2020 that are only going to spread its popularity.

Exodus offers a variety of services for their users including desktop, mobile, and hardware wallets. It’s easy to use platform is also a plus for newcomers and amateur investors.

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