What is a crypto wallet?

December 1, 2022
Posted in News
December 1, 2022 TheLDao

What is a crypto wallet?

Create Your crypto weallet

If you’re interested in participating in the LightDao marketplace, you will need to understand what a wallet is. Wallets are used to send, receive, and store digital assets like Ether.

You will need an account with a wallet provider. This account will assign you a public address and private key.

What is a public address?
Public addresses come in the form of a string of numbers and letters that are used to identify wallets and to send and receive crypto. You can think of it as a username or an email address.

What is a private key?
Private keys act like complex passwords which give access to wallets and their protected assets and allow users to send tokens from their public address. It is important to keep your private keys as safe and as possible.

What are the types of wallets?
Wallets come in many forms. They are either built into your browser, an extension added to your browser, a piece of hardware plugged into your computer or even an app on your phone.

Desktop/Mobile: Software that connects to the Internet as a solution to processing blockchain interactions. This is the most common type of wallet and may come in the form of a browser extension or mobile application.

Ex: Metamask, Torus, MyEtherWallet, Coinbase, WalletConnect, MyEtherWallet, Fortmatic

Hardware: A piece of hardware that is built to keep your crypto secure via a physical medium. These will usually come in the form of a USB device. They can stay offline and be kept somewhere their user feels it is safe, while still being able to go online when the user would like to engage with the blockchain to store assets or manage funds. This usually involves plugging the device into a PC.

Ex: Ledger, Trezor

How do I keep my wallet secure?

Never share your private key or wallet password.
Store your private keys somewhere safe that you will not forget. Losing access to your private keys means losing access to any digital assets protected by the associated wallet.
Pay attention to where you are signing transactions and connecting your wallet. A malicious website that you connect your wallet to can clean out the entirety of your assets.

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