Crypto For Beginners 4 – What Is A Cryptocurrency Wallet

Share This Post

Share on facebook
Share on linkedin
Share on twitter
Share on email

What is a Cryptocurrency Wallet?

A cryptocurrency wallet is a software program that stores private and public keys and interacts with various blockchain to enable users to send and receive digital currency and monitor their balance. If you want to use Pirl or any other cryptocurrency, you will need to have a digital wallet.

How do they work?

Millions of people use cryptocurrency wallets, but there is considerable misunderstanding about how they work. Unlike traditional ‘pocket’ wallets, digital wallets don’t store currency. In fact, currencies don’t get stored in any single location or exist anywhere in any physical form. All that exists are records of transactions stored on the blockchain.

Cryptocurrency wallets are software programs that store your public and private keys and interface with various blockchain so users can monitor their balance, send money and conduct other operations. When a person sends you Pirl or any other type of digital currency, they are essentially signing off ownership of the coins to your wallet’s address. To be able to spend those coins and unlock the funds, the private key stored in your wallet must match the public address the currency is assigned to. If public and private keys match, the balance in your digital wallet will increase, and the senders will decrease accordingly. There is no actual exchange of real coins. The transaction is signified merely by a transaction record on the blockchain and a change in balance in your cryptocurrency wallet.

What are the different types of Cryptocurrencywallets?

There are several types of wallets that provide different ways to store and access your digital currency. Wallets can be broken down into three distinct categories – software, hardware, and paper. Software wallets can be a desktop, mobile or online.Pirl has available Desktop, Web and Paper wallet.

– Desktop: wallets are downloaded and installed on a PC or laptop. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.This is the reason its mandatory to encrypt your Pirl wallet with a password upon creation.

The latest version of Pirl desktop wallet is Nautilus an update to Oystr wallet.

In addition to the conventional crypto wallet Nautilus also allows you to create and monitor smart contracts and manage multiple addresses.

– Online: wallets run on the cloud and are accessible from any computing device in any location. Those are not highest level of security wallets and you should avoid using them unless necessary.

You can find Pirl web wallet here – https://wallet.pirl.io/

 Mobile: wallets run on an app on your phone and are useful because they can be used anywhere including retail stores. Mobile wallets are usually much smaller and simpler than desktop wallets because of the limited space available on a mobile. Pirl is currently working on a Mobile wallet.

– Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline which delivers increased security. Hardware wallets can be compatible with several web interfaces and can support different currencies; it just depends on which one you decide to use. What’s more, making a transaction is easy. Users simply plug in their device to any internet-enabled computer or device, enter a pin, send currency and confirm. Hardware wallets make it possible to easily transact while also keeping your money offline and away from danger.

As hardware wallets can be considered highest level of security for your funds.

The team is currently working on PIRL integration for Trezor and Ledger Nano S

– Paper: wallets are easy to use and provide a very high level of security. While the term paper wallet can simply refer to a physical copy or printout of your public and private keys, it can also refer to a piece of software that is used to securely generate a pair of keys which are then printed. Using a paper wallet is relatively straightforward. Transferring Bitcoin or any other currency to your paper wallet is accomplished by the transfer of funds from your software wallet to the public address shown on your paper wallet. Alternatively, if you want to withdraw or spend currency, all you need to do is transfer funds from your paper wallet to your software wallet. This process, often referred to as ‘sweeping,’ can either be done manually by entering your private keys or by scanning the QR code on the paper wallet.

You can create your PIRL paper wallet by creating a wallet at https://wallet.pirl.io/ and click Print Paper Wallet upon creation.

If you need any help with your Pirl wallet, please don`t hesitate to join us on discord for help and support:

Reference:

Blockgeeks
Pirl Website

Subscribe To Our Newsletter

Get updates and learn from the best

More To Explore

Lion-fork-blog
Pirl News

PIRL – Upgraded to Lion Fork

As you all know, PIRL is the first one who introduced Ethash based Masternodes to the blockchain ecosystem and developed the first 51% attack protection

en_USEnglish
fr_FRFrançais nl_NLNederlands tr_TRTürkçe es_ESEspañol pt_PTPortuguês ru_RUРусский ko_KR한국어 zh_CN简体中文 hi_INहिन्दी en_USEnglish