Understanding How Crypto Wallets Works

2 min readJun 7, 2022

With the hype around cryptocurrency, more people are venturing into the digital currency and the crypto coins world. However, it’s important to understand how the components of the crypto ecosystem work.

One of the first things a user is required to know about is cryptocurrency wallets.

Crypto Wallets can be compared to bank accounts, used to save money but in the case of Crypto Wallet, it’s used to save and facilitate crypto transactions.

Crypto Wallets help you store your crypto assets. It serves the purpose of traditional wallets alongside other crypto-specific functions.

Cryptocurrency wallets have several similarities with the regular wallet as it helps you save your assets but in addition, it allows users to send and receive digital currencies.

It is important to have a wallet address to make the transactions possible. A cryptocurrency wallet is a software program that contains public and private keys that are unique to the owner of the particular wallet.

The wallets allow you to interact with blockchains, enabling you to not only make purchases and transactions but also monitor balance.

There are various types of wallets, this includes desktop wallets, mobile wallets and web wallets, based on the platform and device you are using them on.

Depending on the type of cryptocurrency, wallet and transaction type, there may be a transaction fee attached, whose value is variable.