Cryptocurrency might be a word that has been around for around two decades. However, within this short period it has been able to make a reasonably big impression amongst thousands of people. Yes, there are many who are still not comfortable with the use of cryptocurrency. This has not stopped the increase of the use of cryptocurrencies and there are some big names like Bitcoin, Ethereum and many others who have been able to do quite well. There are dozens of other brands of cryptocurrencies that are also making their presence felt strongly.
What is a Cryptocurrency?
Like any other form of legal tender currency such as the USD or GBP, cryptocurrency can be used to buy any products or services that we use on a daily basis. You also could trade cryptocurrencies and make profit out of it, the same way as you trade in currency foreign exchange trading. However, unlike other formal currencies, cryptocurrencies make use of cryptography to enable the performance of secure online transactions. Even today, most of the money is made by trading on cryptocurrencies and its usage for regular buying of products and services is still relatively very low.
What are Cryptocurrency Wallets?
If you wish to use cryptocurrency for buying and selling of products and services or for the purpose cryptocurrency trading, you need to have cryptocurrency wallets. There are some big names like Atom Cosmos web wallet and also Cosmos Web Wallet. You also could use these wallets in a brick and mortar environment making use of the conventional cosmostation wallet.
Why are they needed?
Cryptocurrency wallets are needed for storing secret keys and they are useful for digitally signing transactions that are made with the help of distributed ledgers using blockchain technology. However, this is just one of the many uses of cryptocurrency wallets and the future indeed looks bright and exciting. It could be used for representing the financial status of a person or entity and also for describing the physical identity and status of a person.
Cryptocurrency wallets are also used for storing the encryption keys that are required for digitally signing into the ledger to complete transactions, whether it is trading on certain cryptocurrencies or for other purposes. It also is useful for storing the address for a particular blockchain where the asset in question resides. When a person loses that address, he or she or that entity may also run the risk of losing control as far as the entire digital money or other types of assets are concerned.