Wallets, as we know them, are kept in our pockets filled with cash and credit/debit cards; but now we may not have a physical wallet for too much longer. For all of the cryptocurrency that is available these days, we are going to need somewhere to store this currency. Even though this currency isn’t physical money, there is still a need for a place to put it and claim that it is ours.
Virtual wallets have now become a necessity, and we needed to figure out precisely what to do with all of this virtual currency. One idea is to create these secure databases online called wallets, with a private key address that is specifically for our wallet. Some virtual wallets like coinbase are an application on your phone that can hold your virtual currency.
Another form of wallet that can hold your cryptocurrency is actually in the form of hardware. This hardware acts a lot like a USB device except it holds your cryptocurrency, and depending on the type of hardware you get can even perform transactions from the equipment.
A paper wallet is a cold storage software/hardware device that is solely for storing their cryptocurrency. The currency is just stored on these wallets and then has to be transferred to a hardware or software to be able to use the cryptocurrency. To access this, you need the information that is stored on a paper in the physical world.
These wallets are used for only storing cryptocurrency, and the encryption that is used to secure these wallets is top of the line and the most difficult to decrypt. Cryptocurrency is becoming extremely popular when it comes to a country to country trade because the currency is a 1:1 exchange rate and doesn’t vary depending on the country. When people transfer money across companies, it is made easy with the use of the online wallets.