Wallet functions and about stereotypes
To interact with the blockchain network — to send and receive cryptocurrency — you need a crypto wallet. Storing assets directly on a crypto wallet is an established misconception.
The cryptocurrency itself is not contained in the wallet. It is located in the blockchain of a specific coin, its project. It’s just software that stores a list of addresses for various crypto assets.
According to the type of interaction with the Internet, they can be divided into hot and cold. The first ones are those that are constantly connected to the Network, the second ones are connected only when the owner wants.
According to the owner’s method of interaction, there are software, hardware, and paper wallets. The latter are no longer used in the modern crypto world — a bad tone, an outdated method. No less secure, but more practical, as an alternative — hardware.
Most often, software — hot, hardware-cold.
Assigning wallets:
generating the necessary information to send and receive cryptocurrency via blockchain transactions, including public and private keys.
providing an address (alphanumeric identifier) that is created based on the public and private keys. This address is your “corner” in the blockchain, to which you can send assets.
The key to understanding the functionality in simple words: the wallet can be associated with online banking, the address of this wallet — with the account number, the blockchain-as a bank account, and, in the case of the custodial, it can be regarded as a personal banker.
Public addresses are similar to specific crypto accounts. They can be used to get a particular type of cryptocurrency (for example, to get BTC, you need a bitcoin address), and they can be placed on public display.
Each address is related to all transactions associated with it in the blockchain of a particular altcoin (token).
