Crypto wallets keep your private keys – the passwords that give you access to your cryptocurrencies – safe and accessible, allowing you to send and receive cryptocurrencies like Bitcoin and Ethereum. They come in many forms, from hardware wallets like Ledger (which looks like a USB stick) to mobile apps like Coinbase.
Why are crypto wallets important?
Unlike a normal wallet, which can hold actual cash, crypto wallets don’t store your crypto.
How do you use a crypto wallet?
Paper wallets
- Keys are written on a physical medium like paper and stored in a safe place.
- Online wallets are stored in an app or other software – look for one that is protected by two-step encryption. This makes sending, receiving, and using your crypto as easy as using any online bank account, payment system, or brokerage.
Difference between the Coinbase app and Coinbase Wallet
The main Coinbase app allows you to buy and sell crypto or exchange it for fiat currency and transfer it to a bank account.
- Coinbase Wallet is a separate app that allows users to store their private keys, send, receive, and spend digital money, browse and use DeFi applications, etc.
