Demystifying Crypto Wallets: Your Key to Securely Managing Cryptocurrencies

What are your views on cryptocurrency and how crypto wallets play a crucial role in its handling? Do you have any idea that though it is virtual, you can buy, donate, save, transfer and earn interest on it? Yes, these virtual currencies can be transacted too and reserved for later use. I personally think since banks on a global level, are considering crypto, we also must be able to treat it like our everyday normal and start getting educated on it. We all have heard what crypto is, it is only that we don’t know what it resembles because it is virtual.

I am Prema Chuttoo, your crypto guide, and will accompany you in a series of crypto education. Stay tuned. We will start from the very beginning.

What is a crypto wallet?

A crypto wallet stores virtual currencies. It is virtual but it resembles a physical wallet, where we can hold several notes and coins. It holds altcoins(which are the different virtual coins that exist in the blockchain system such as Bitcoin(BTC), Ethereum(ETH), and TRON(TRX)). Blockchain can be referred to as a banking system but in a decentralized way.

One advantage that a crypto wallet has over a physical wallet is that the monetary value of the altcoins held in it increases daily or can even decrease. That is why we have the tendency to hold those coins that will be appreciated.

The most trustworthy crypto wallet I know of are Trust and Blockchain.com wallets. They can both be uploaded on Android or Apple mobiles. With that, security phrases and passwords are created on these wallets so that only you have access to them. Since they will be on mobiles, just like any other app, you will need a password to access them. For each altcoin on your app, a wallet address will be created so that transfers and transactions can be done separately. These are the icons for Blockchain and Trust Wallet, if ever you will download them.

So once these wallets are created, funds need to be added to them like Bitcoin (BTC), Ethereum(ETH), USDT, and TRON(TRX). Mostly BTC and USDT can be bought from any platform and they are converted to other altcoins. These are the following ways to buy BTC and/or USDT.

1) Bank Transfers: Linking your bank account to your crypto wallet allows you to transfer funds directly. This method is secure and convenient but may require additional verification steps.

2) Credit/Debit Cards: Many wallets support credit or debit card payments, allowing you to fund your wallet instantly. Ensure that your wallet provider supports this funding method and check for any associated fees.

3) Peer-to-Peer (P2P) Transfers: Some wallets offer P2P transfer options, allowing you to buy cryptocurrencies directly from other users. This method can provide flexibility and may be suitable if you prefer dealing with individuals rather than centralized exchanges.

This process of funding does not stop here — you will have to go through a verification process to be able to buy and fund your wallet. This includes submitting your id and address information. The validation process can take up to 48 hours so that you can move forward with your funding. The process is just the same as a bank where you have to submit your id and your address documents. The only difference is that it is virtual here. Everything is done at your convenience — at your home, café, at a party or during travel.

In some countries, buying on these platforms is prohibited. So there are other platforms which allow this transaction. One example is paxful.com, where again you have to go through a verification process to be able to buy. Paxful.com has emerged as a prominent platform, empowering individuals worldwide to engage in peer-to-peer cryptocurrency trading. With its user-friendly interface, comprehensive features, and commitment to financial inclusion, Paxful.com has established itself as a trusted marketplace for buying and selling cryptocurrencies. This is an example of a Trust wallet(see the icon on the bottom left) where several virtual coins are being stored.

After the funding process, we can think of the different monetizing ways of crypto, which will be discussed in the upcoming articles. Let me know if you are facing any issues in getting yourself a wallet or funding it.

Enjoy the educational part of crypto!