In recent years, many more people have become interested in cryptocurrency trading. Since Bitcoin’s historic highs in 2017, several people have seen cryptocurrency as a new and profitable investment strategy. However, as a new medium, people often have questions about how it works.
One primary question people often have revolved around currency keys and signatures. While you may have come across these terms online, do you know how to access and store this information? The answer is simple: find a secure digital wallet.
If this is all new to you, that’s okay! In this article, we’ll explore what a digital wallet is and how it helps your trading.
Distinguishing Public Keys, Private Keys, and Signatures
If you’ve spent much time investigating cryptocurrency, you’ve likely seen these three terms. Crypto exchanges rely on this information to keep their transactions anonymous and secure.
Bitcoin and the other leading cryptocurrencies utilize public-key cryptography. This system uses two sets of keys: public and private.
These platforms use public keys to identify yourself on the exchange. Private keys, on the other hand, remain secret and play a role in authentication and encryption.
Lastly, there are signatures. Digital signatures prove that you own a private key without having to reveal sensitive information. It also prevents anyone else from modifying transactions once you’ve signed them.
How to Store and Receive this Information
To keep this information secure, you need a place to store it. That’s where a Cryptocurrency Wallet comes in. A cryptocurrency wallet is essentially software that you can use to view your balances and make transactions.
You’ll use your digital wallet to store your public keys and addresses. Each cryptocurrency requires a public address specific to that currency. For example, if you want to purchase Ethereum, you’ll need an Ethereum address.
Each of those public addresses circles back to transactions associated with the address on a blockchain, which your wallet accesses. Different wallets use varying means of proving you own an address.
Non-custodial digital wallets use your private key to verify this ownership. Custodial wallets, on the other hand, hold your keys for you. To access your addresses with these wallets, you input a password in their app.
Advice for Usage
When you consider entering into crypto exchanges, there are some tips that we recommend you follow. First, never reveal or share your private keys. Follow every protocol you need to ensure this data remains private and secure.
Second, understand that digital wallets don’t store crypto directly. A digital wallet stores the addresses that allow you to access your tokens. It lets people trade and move addresses and view their available balances.
Find Your Digital Wallet Today!
Starting your crypto trading begins with finding a reliable digital wallet. With this software, you gain access to various blockchains. You also discover a place to store your signatures and keys.
So, don’t hesitate. Find your best wallet today!
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