A blockchain wallet is a crucial part of buying and holding cryptocurrencies. You need at least one. But, how do you choose among the many? Let’s start with the question: What is a blockchain wallet, even? The best way to think of a blockchain wallet is as a computer program that carries out and manages cryptocurrency transactions. They are also known as “crypto wallets” and they come in different forms. But, for the purpose of this article, we’re going to refer to a very specific form of blockchain wallet. Keep reading for more information….
What Does a Blockchain Wallet Do?
As mentioned before, there are different types of blockchain wallets. They come in three main types: Software, hardware, and paper. Our focus will be on software wallets because they are relatively easy to use. The job of a blockchain wallet is to access the blockchain, the virtual environment in which cryptocurrencies reside, and carry out cryptocurrency transactions, storing those transactions and managing them.
A blockchain wallet does not store cryptocurrency. The blockchain does and there several different blockchains out there too. The blockchain is a computer program as well. It houses data, specifically
And while there are many software blockchain wallets out there, we suggest starting out with COINBASE.
Maybe that is best question to start with. A wallet is best described as that leather bound “fold-over” pouch you store your cash, credit cards, that photo of your first supercar (that you are going to buy when your bitcoin goes to $200k each).
Well the blockchain – the new database of the future and platform that Cryptocurrencies reside in requires a wallet to exchange, utilize and redeem. This is a virtual environment, that operates like that wallet in your back pocket, only in the data world.
Looking for the best way to upload CASH or FIAT into Cryptocurrency? We use the blockchain wallet with COINBASE (we suggest you set up – its the best way to learn more. You get $10 in BTC just for joining).
From there, there are several other wallets – all with set purposes and resource within blockchain, cryptocurrency and the growing digital future in store for us all.
Coinbase is now offering Staked Coins, and the option to “Stake” or hold your coins for gains. You agree to lock them, where you “STAKE THEM” meaning you will not sell or transfer them. They are STAKED so they hold the value of the COIN itself. For doing so, you get a APY or Annual Percentage Yield as you would with a Bond or Savings Account. These are ranging from 0.01 to sometimes 25% or more. The ones supported within Coinbase generally have proven to be more safe. But risk is always involved with investments and that includes staking.
Staked Coins are able to gain in rewards, usually in additional coin as the staking is occurring. Similar to a bank bond or Certificate on Deposit. Used to create and leverage the creation of additional Crypto Coins.
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