How To Open A Wallet?

Those interested in investing in cryptocurrencies must know about cryptocurrency wallet. It is the very first thing that you will need when deal with cryptocurrencies. Wallets are the central place where users spend, receive and bank their digital coins.

What is wallets' function?

Digital wallets are not much different from the physical leather wallet that most carry around daily to keep their money and cards, but besides neatly storing and securing your money, cryptocurrency wallet offers additional features: record keeping, unlimited space, balance indicator and more.

It must be noted that these wallets don’t actually store the digital currency what is stored is the private key for the coins that you own. Except for these keys, you don’t need any more information to transact in cryptocurrency.

How do they work?

Cryptocurrency wallets are primarily software programs that store the keys for the coins. Each wallet has a unique address and when someone sends you a cryptocurrency, they are assigning the ownership of the coins to your wallet’s address. So, if you want to unlock those coins, the private key in your wallet must match the currency’s assigned public address.

Once the public and private keys are matched, the balance in your wallet increases. So, there is no physical exchange of coins, instead, the transaction is processed based on the records stored on the blockchain.

How to open a wallet?

There are several options to get a wallet: they are available via web browsers, available as smartphone apps, or even in the form of hardware devices that you can buy online. Also, many exchanges, like Coinbase, automatically open a wallet for a new account. But, this is not always a good option as users are charged a transaction fee for the outside transaction.

For a new user, opening a web-based wallet is the recommended option, since it is the easiest option. Again, users have several options to open a web-based wallet, but as an example and for the sake of simplicity, we are taking blockchain.info.

Example: Blockchain.info

To open a wallet first head to the blockchain.info homepage, and go to the “New to Digital Currencies?” and then click “Get a Free Wallet.”

Next, enter your email and password. Now, you will have to confirm the password and accept the Terms of Service. Not to mention do try to read the terms of service and choose a strong password that you can also remember easily. After this, click ‘Continue’ and the press “Get Started.”

Your wallet is now live. And, you can now create an address for receiving coins. You can receive coins by clicking “Request” and send coins by clicking “Send.” For sending the coins, you will first have to fund your wallet.

All the web-based wallet follow more or less the same procedure for opening an account, but different wallets support different coins, like blockchain.info support BTC, ETH, or BCH. So, you must research the coins that a particular wallet supports.  

 


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