Each crypto wallet address comes with a unique phrase, made up of a random assortment of numbers and letters that come in different lengths, which help to identify a specific wallet, much like the numbers used to identify a bank account.
There's a common misconception that a crypto wallet holds coins, but this oversimplifies the reality. In fact, all coins reside on the blockchain. The wallet securely stores a set of public and private keys that authorize transactions.
Wallet Types
When storing these keys, there are two options for users to decide between using a software (hot) wallet or a hardware (cold) wallet.
Wallet Type | Description | Pros | Cons |
Software (Hot) Wallet | Stores keys on internet-connected devices like smartphones or computers. | Intuitive and user-friendly interface | Prone to online threats like hacking or malware. |
Hardware (Cold) Wallet | Stores keys offline on devices like USBs. | Highly secure as it's not connected to the internet when unplugged. | Initial cost and risk of physical loss or damage.
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❗ Things to Keep in Mind
At Ramp Network, we don't provide wallet addresses for our users. This means you need to have your own wallet set up before you start any transactions. A properly set-up wallet ensures your transactions are smooth and secure.
Make sure to choose a reputable wallet service and follow all the setup instructions carefully. This preparation is essential for managing your crypto safely and effectively.
Always double-check that your wallet address is accurate when you're ready to complete your transaction. Once the coins are on the move, there's no turning back. Blockchain transactions are irreversible once the coins have been transferred.
Your wallet address is like your bank account number - it's safe to share when needed. However, your private key or seed phrase is like the PIN to your account - never share it. The private key or seed phrase allows full access to your wallet, so keep it secure and never disclose it to anyone.