Cryptocurrency wallets provide users with a digital solution for securely storing and managing blockchain assets and cryptocurrencies. These wallets allow users to spend, receive, and trade cryptocurrencies. While some cryptocurrency wallets may only provide support for a single cryptocurrency, many are multi-asset solutions, allowing users to hold multiple cryptocurrencies, including Bitcoin, Bitcoin Cash, Ethereum, and Litecoin, among many others.
These solutions ensure that the owner of the cryptocurrencies and blockchain assets is the only entity who can access the funds by requiring elaborate passwords and other security measures. Users can view or access cryptocurrency wallets from smartphones and computers.
Cryptocurrency wallets do not physically store the blockchain assets; instead, the wallets store public and private keys. Public keys are segments of digital code that are attached to a decentralized blockchain, almost like a bank account number.
Private keys are also pieces of digital code, but are unique to an individual’s cryptocurrency wallet, similar to an ATM PIN code. Private keys match and prove ownership of public keys. Owners use their private keys to conduct all transactions with the cryptocurrency that they own.
Cryptocurrency wallets can be utilized by businesses accepting payments through cryptocurrency payment gateways to securely store or exchange blockchain assets.
To qualify for inclusion in the Cryptocurrency Wallet category, a product must:Allow users to store private keys associated with a blockchain ledgerProvide a way to interface with said blockchains to store, send, and receive cryptocurrencies, as well as monitor balancesOffer security measures to ensure private keys are only accessed by owners of the blockchain assets