When deciding to go down the financially anarchic path of cryptocurrency, you are relieving banks of the duty to protect your assets and assuming that responsibility onto yourself. This comes with the risk of being hacked. Private keys are the secret combinations that yield access to each wallet that your coins or tokens are stored in. If you are hacked and your private keys are stolen, the person who stole them has access to your coins or tokens and there is no way of recovering them. No fraud protection to call and no authority to reach. The rules of the Bitcoin network are intentionally simple. He who has the keys has the Bitcoin. The network doesn’t care that you’re Joe Shmoe and those bitcoins are rightfully yours, if someone else gets your keys, they get your funds.
There are 4 primary categories for wallet types, and they are named:
There is an important distinction between wallets and clients. This distinction is made below:
Web wallets store your private keys (i.e. password) for you on their servers
Desktop wallets can be lightweight
Installed on a mobile device- usually operate as a lightweight client or a web client
Cold Storage Types:
Recap for all wallets:
I came into crypto for a decentralized web and stayed for everything else. I come from a background of political and entrepreneurial interests, but crypto eventually took immediate precedent, as it was a new infrastructure for every aspect of humanity in the form of trust-less trust. I am majoring in Finance and currently working with Garden of Crypto. I hope to scale into running network infrastructures like Lightning Network and several other crypto network nodes.