Crypto Wallet
Digital Currency Wallet is a type of software that stores private and public keys in itself and allows you to send or receive cryptocurrency by connecting to different blockchains. Consider Digital Currency Wallet similar to a bank account, the private key is the same as the account password and the public key is the same as your account number. So if you want to use Bitcoin or any other cryptocurrency, you need a virtual currency wallet.
What is a Digital Currency Wallet and How does it Work?
Millions of people use cryptocurrency wallets, but not everyone is familiar with how it works. The main difference between a digital currency wallet and your pocket wallet is that in Cryptocurrency Wallet, your currencies are not physically stored, but all that is inside your wallet is only a record of blockchain transactions.
In other words, Cryptocurrency Wallet works similarly when you use an ATM. A debit card is linked to a bank account where you have physically deposited money, but there is no physical money inside your debit card and only your transactions are recorded in it. The same thing happens in your virtual currency wallet.
For example, when someone sends you bitcoins, he is actually signing the non-ownership of these bitcoins and transferring their ownership to your wallet address. In order to be able to spend or send these coins later, the private key stored in your cryptocurrency wallet must match the public address to which they were sent and signed. If the public and private keys match, the balance of your cryptocurrency wallet will increase and the balance of the sender's wallet will decrease. So In fact, no money is physically exchanged. Transactions are signed only by using the transaction history in the blockchain and changing the balance in your cryptocurrency wallet.