More than 99.9% of individuals on this planet are still in the dark as to what are cryptocurrencies and blockchain wallets. If you can get your hands on at least one blockchain wallet while it’s still easy and less competitive, you will definately be happy that you did before the stampede starts.
Don’t take my word for it, take a lot at the stats below:
WHAT IS A BLOCKCHAIN WALLET?
Blockchain Wallets are a digital version of your physical pocket wallet. Being a digital wallet ofcourse, the content of a Blockchain Wallets also has to be digital. Digital versions of your physical cash, also know as cryptocurrencies, are stored and transacted using Blockchain Wallets.
These digital wallets are usually apart of a bigger digital network built on a technology known as Blockchain. The blockchain network may be a simple backbone to support the cryptocurrency, for example in the case of the Bitcoin network; or may be a much more capable network with its own decentralized government and independent contractual activities without the use of a third party, like Ethereum and EOS.
WHAT IS BLOCKCHAIN WALLET USED FOR?
Blockchain Wallets are software programs used to store and send cryptocurrencies one blockchain wallet to the another.
HOW DO BLOCKCHAIN WALLET WORK?
Blockchain Wallets function by storing a unique private and public key which the user uses to securely gain access to the wallet, as well as to send and receive cryptocurrencies. The wallet maintains its security through a digital network process known as decentralization.
In a fully decentralized network, all transactions made using the blockchain wallet are recorded and almost instantaneously distributed to every user on the network. Each set of new transactions are verified in a block and the new block, as well as all other previous blocks, is then copied to each network participants. The nature of the network makes it resistant to hacking or other malicious intent.
WHAT IS BLOCKCHAIN WALLET PRIVATE AND PUBLIC KEYS?
A Public Key is a cryptographic key that is shared publicly to anyone that wants to send a cryptographic message (for example, Bitcoin or Ether) to a recipient on the blockchain.
A Private Key is a cryptographic key used by the blockchain recipient to gain access to the cryptographic messages in his/her blockchain account. Unlike Public Keys, Private Keys should always be kept private and secure, as anyone can use the Private Key to gain access to your cryptographic assets like Bitcoin, Ether, EOS or XRP.
WHAT IS BLOCKCHAIN WALLET ADDRESS?
Blockchain wallet address is the public key that is displayed and used publicly for anyone to send cryptographic messages like Bitcoin and Ether to a blockchain wallet.
HOW TO CREATE A BLOCKCHAIN WALLET?
Blockchain wallets are created by downloading the application to your computer device and installing the software. These applications are usually no different from downloading and installing any other application from the internet.
However, before you decide to download a blockchain wallet, you will need to identify the the type of wallet that you need based on the functionalities of the wallet and the your specific needs as a user. Some of the questions that you will need to answer are:
- Am I interested in storing just one cryptocurrency or multiple cryptos?
- Do I need a digital, paper or software/digital wallet?
- Do I want to exchange one cryptocurrency for another directly in my wallet?
Some of the popular blockchain wallets are:
- Exodus – Multiple Cryptocurrency + crypto exchange
- Coinbase – Multiple Cryptocurrency + crypto exchange
- Rippex – Single Cryptocurrency (XRP)
- Jaxx – Multiple Cryptocurrency + crypto exchange
- Electrum – Single Cryptocurrency (Bitcoin)
- Bitcoin Core – Single Cryptocurrency (Bitcoin)
- My Ether Wallet – Single Cryptocurrency (Ether)
Here is an example showing the Steps to create Exodus wallet:
Step 1 – Visit Exodus Website.
Step 2 – Select Download from the upper right for your operating system.
Step 3 – Open the Exodus installation file to install Exodus.
Step 4 – Follow the installation steps.
HOW TO FUND A BLOCKCHAIN WALLET?
To fund your blockchain wallet you will have to follow the specific instructions given by the blockchain application provider. Most – if not all – blockchain wallets can be funded simply by transferring cryptocurrencies, like Bitcoin, from one blockchain wallet to the public address of the wallet that you wish to fund.
However, some blockchain wallet providers – like Coinbase, Bittrex, Poloniex, Bittrex etc – allow users to fund their accounts directly from their bank accounts, credit or debit card. A lot of people use the more reputable website, such as Coinbase, to purchase their crypto assets before transferring those assets to other blockchain wallets.
Please note: before transfering your cryptocurrency assets from one blockchain wallet to another, be sure to double check the public key for the receiving address, as assets transfer to the wrong address is irreversible.
DIFFERENT TYPE OF BLOCKCHAIN WALLETS
With more than 2000 cryptocurrency networks out there and each network having its own blockchain wallet, there are numerous Blockchain Wallet wallets available in the cryptocurrency space. However, this chaos can be simplified by grouping the blockchain wallets based on similar characteristics. The four main types of Blockchain Wallets are paper wallet, software or digital wallets, hardware wallets and cold storage wallets.
1. Paper Wallets
Paper wallets involves the use of physically paper printout of the private and public keys to the user’s blockchain wallet.
Here is are some popular blockchain paper wallets:
- Ethereum Paper Wallet
- Bitcoin Paper Wallet
- Ripple Paper Wallet
- EOS Paper Wallet
- Bitcoin Cash Paper Wallet
2. Software or Digital Wallets
Here are some popular blockchain software/digital wallets:
3. Hardware Wallets
Here are some popular blockchain software/digital wallets:
HOW TO RECOVER BLOCKCHAIN WALLET?
If you have lost or forgotten the information to access your blockchain wallet, here are the steps to follow to restore your wallet:
Step 1 – Locate your wallet words
Your wallet words is a phase that can be used access crypto assets like Bitcoin, Ethereum, EOS etc.
Your wallet words must be kept safe as it can be used to illegal access you crypto funds.
Here is an example for the Exodus Wallet:
- Download the latest version of Exodus at www.exodus.io/releases/
- Launch Exodus
- Click the restore from the backup link on the Portfolio welcome screen.
- Choose 12 word Recovery Phrase
- Exodus will then restart and ask you to enter your 12-word phrase
- Type your 12-word phrase in order with one space between each word
- Click Restore
- After a few seconds, Exodus will open with a popup “Restore Complete” Click OK and go do something else while Exodus finishes restoring your assets; this can take around 10 minutes to complete.
- When Exodus says “All Done! Your assets have been restored” your wallet is ready to use.
- Make sure to set a password on your newly restored wallet.
Step 2 – Find your wallet backup folder
Wallet backup is an encrypted copy of your blockchain wallet. Usually when installing a blockchain wallet you will be presented with the option of creating a cloud version of your wallet. With blockchain wallets like MultiBit, if you have been storing your wallet backup information in the cloud, then in addition to your cryptocurrency assets, you may be able to use your wallet words along with your wallet backup recover the following as well:
- your contacts and notes
- your payment history and notes
- the currencies and exchange rates used in payments
Step 3 – Complete wallet restoration process
To complete the restoration process many blockchain wallets providers may require you to click restore and follow further instructions.
Additional blockchain wallet recovery options
If you have exhausted all other options of recovering your blockchain wallet, hypnosis have been used before to recover lost blockchain information.
HOW TO DELETE A BLOCKCHAIN WALLET?
WARNING: IN MOST CASES, DELETING YOUR BLOCKCHAIN WALLET WILL REMOVE YOUR DIGITAL ASSETS FROM YOUR COMPUTER AND THEY CANNOT BE RECOVERED WITHOUT A BACKUP. BE SURE YOU HAVE SENT ALL OF YOUR ASSETS OUT OF YOUR WALLET OR HAVE A COMPLETE BACKUP BEFORE CONTINUING.
To delete your blockchain wallet follow these steps:
Step 1 – Open the blockchain wallet application.
Step 2 – Go to the folder that stores all your cryptocurrency assets information and delete all the information.
Step 3 – Uninstall or delete the wallet application
Step 4 – Delete any related document that was used to store any information about the wallet.
Step 5 – If you wish to completely delete all related information about the blockchain wallet, you will need to delete any cloud stored information.
Please note: For safety reasons, some blockchain wallet providers store the keys to your wallet in a location on your computer that is separate from the wallet program’s data.
HERE IS AN EXAMPLE USING EXODUS WALLET:
1. Quit Exodus.
2. Remove the following folder containing your digital asset keys and wallet data on your computer. The data directory is located in different places depending on if you are on a PC, Mac or Linux.
- Open the Exodus menu and follow this path: Developer > Data Folder > Open Data Folder
- Alternatively, you can also get here by opening finder and pressing Command + Shift + G. Copy and Paste this into the Go To Folder text field: ~/Library/Application Support/Exodus
- You can also access the folder from the Exodus wallet by opening the developer menu and following this path: Developer > Data Folder > Open Data Folder.
- Alternatively, you can follow the path Windows: C: > Users > YOUR-USERNAME > AppData > Roaming > Exodus
- Windows users may need to show hidden files to access this folder.
- Home > YOUR-USERNAME > .config > Exodus
- ( Linux users may need to show hidden files to access this folder. On most Linux platforms you can turn on hidden files by typing Control + h )
- Once this folder is removed, opening Exodus should lead straight to the portfolio page and there will be no funds in there.
3. Uninstall or delete the Exodus application.
Other Frequently Asked Questions About Blockchain Wallets
Is blockchain wallet an exchange?
Which blockchain wallet is the best?
- My Ether Wallet
- Bitcoin Core
Can blockchain wallet hold Ethereum, litecoin, bcc, erc20, ripple?
If you wish to store multiple cryptocurrencies in the same blockchain wallet, then you will have to get a blockchain wallet like:
- Ledger Blue
- Ledger Nano S