Do you remember the first time you received your allowance?
Or better yet, do you remember the first time you had to buy anything with your own money?
For most people, this is the moment that you finally see the value of money in your hands. To watch it “disappear” while you trade it for what you want can be both magical and frustrating at the same time.
However, dealing with those ups and downs of owning money is part of life.
It teaches you that your work or behavior can lead you up to rewards, while movements beyond your reach (such as market volatility) can affect the value of the prize you worked so hard for.
At the end of the day, you learn how to deal with it.
In crypto, this is not different.
Before you really start to understand it and see the full benefits of it, you have to deal with the frustrations and the mechanism of cryptocurrencies.
And as it is with our first allowances, we shall begin from the beginning:
- Do you have a crypto wallet? Do you know how it works?
- Or else, do you know why you need it?
We’ve come a long way since piggy banks and leather wallets. So let’s learn how this new form of the wallet works and preserves our assets, keeping our dreams alive and our money safe.
1. What is a crypto wallet?
A cryptocurrency wallet consists of a mechanism made for you to manage and make transactions with your coins.
A crypto wallet can be either hot or cold.
Wait a minute, how did we come from money to temperatures so fast, right?
Let us explain:
Hot wallets are called so because they are connected to the internet.
Therefore, even though they can be easier to hack if not protected with a good security system, they are faster to make transactions and updates.
An example of a hot wallet is the Klever Wallet – but don’t worry about your safety here.
Klever Wallet is built on top of the Klever OS technology which is a groundbreaking wallet operating system that enables developers of all platforms to run a smart and secure wallet inside their apps, cloud, servers, hardware, smartphones, pen drives, mobile devices, and wearables.
On the other hand, cold wallets can be seen in a “physical form” and they are not constantly connected to the internet. You can access it with a USB or Bluetooth connection.
That’s the case of Klever Safe, the brand new product of our Ecosystem.
Klever Safe will be only accessible via a secure, user-friendly, and approved Klever Wallet app private connection. It is also equipped with a high-grade integrated circuit holding a unique private key to perform cryptographic operations.
2. Which type of crypto wallet should you use?
So, first of all, you have to think about your profile.
Are you the type of crypto investor that needs more of a practical and fast mechanism to operate with your cryptocurrencies?
Or do you need an extra-secure and physical device to make your crypto management?
It is always good to remember that all of Klever’s options were developed to have high-graded and sophisticated safety engines.
So, in the end, what truly matters is what you want for yourself and how you can operate those systems more efficiently in your daily activities.
3. How does a crypto wallet work?
One common misconception about crypto wallets is that they work exactly like a common physical wallet where we put our fiat money.
They don’t work that way. Crypto wallets do not store your coins “inside” them like it is with our regular wallets in the “real world”.
Both hot or cold wallets only show you the crypto stored in the blockchain through the device.
In a simple manner, I like to compare the crypto wallets’ mechanism with a mirror.
They show you the coins you own in the blockchain and their value. They even allow you to make transactions with it but they don’t really own your crypto, they just “reflect” it so you can see it and manage it how you want.
It also means that the wallet’s company does not have custody of your coins – that only happens in Centralized Exchanges.
That’s why no Know Your Customer (KYC) mechanism is necessary.
A crypto wallet does not need any of your private information such as your full name, email, ID number, etc.
Once you create an account, it only generates a combination of 12 random words called Seeds that will result in your Private Key, which you should definitely not lose.
Because since the wallet does not have any access to your information, the company does not hold anyone’s cryptocurrencies.
So, if you lose your seeds, you really can’t get your account back.
That’s why Klever reinforces the need to protect your seeds all the time – the system is completely safe but the user is also a part of that safety mechanism as they have the responsibility to store their seeds and make sure their accounts are secure.
4. Why do you need a crypto wallet?
Well, you also need to understand the difference between a wallet and an exchange.
As previously mentioned, the wallet does not “store” your crypto, they only present a mechanism in which you can manipulate your coins that are stored in the blockchain.
As for the centralized exchange, it does hold your crypto in order to execute the trades. The exchange has custody of the coins, which means they secure the private key, proving ownership of the funds held within it.
That’s why experts recommend keeping the largest amount of your crypto inside the wallet and only leaving inside the exchange the amount you want to trade with.
Because even though exchanges have great anti-hacking mechanisms, if for some reason the exchange is breached, you can lose your money along with it.
As for the wallet, since it’s a “mirror” of your crypto, the only risk that you take is related to losing the seeds. Apart from that, your crypto should be very much safe inside the blockchain, with low to no risk of tampering.
5. How to use a crypto wallet
Now that you already know what a crypto wallet is, the types of wallets and why you need one, let’s talk about its usage in your daily life.
In the first place, we highly recommend the download of the Klever App, also known as Klever Wallet.
Its safety mechanism combined with the user-friendly interface makes the Klever Wallet a unique product for beginners and long-time enthusiasts of cryptocurrency.
You can download Klever Wallet here.
5.1 Managing your crypto
Once you open the KleverApp, you will see the main page that we call ‘Portfolio’ with the list of the cryptocurrencies that Klever has listed in their wallet.
You can always choose which crypto you want to see once you open your app by selecting your favorite in the filter button right above the list.
In the Portfolio session, you’ll also be able to monitor the coins’ prices so you can keep track of how they are performing in the market.
5.2 Swap coins
Another great feature in Klever Wallet is ‘Swap’.
As we mentioned before, with Klever Swap you can trade your crypto inside the wallet in the fastest and safest way.
Let’s say you want to purchase Bitcoin (BTC) but you only have Tron (TRX).
Just go to the ‘Swap’ session, select TRX in the first box (crypto you wish to trade with), then BTC in the second (crypto you wish to trade for).
The screen should look just like this:
By typing the amount you wish to swap and clicking ‘Next’, you’ll be able to watch the “magic happening” with only a few clicks.
5.3 Navigate through your favorite Dapps
Decentralized Applications – or Dapps, if you will – are apps that work with peer-to-peer technology.
They have open-source code and work autonomously. In the blockchain and crypto world, pretty much everything is a Dapp.
That being said, you can use the Browser inside the Klever Wallet to navigate, bookmark and automatically link your wallet to some Dapp projects.
5.4 Keep informed with your crypto wallet
To swim in the deep waters of crypto you must learn how to do it, right?
That’s why crypto wallets like Klever App also have the News section, where we upload our highlighted news, lives, and interviews daily.
Keep informed and don’t miss crypto opportunities.
6. Keep your crypto close and your wallet safe
Safety is very much important in the crypto world and we already know that.
To keep your money well protected in the blockchain you have to be savvy about this and that’s why we never get tired of reinforcing: don’t leave all your money inside the exchange.
Even though Exchanges such as Klever Exchange are built with top-notch security systems, the ideal place to “store” and manage your digital coins are crypto-wallets.
Both of these products are meant to work independently and harmonically, completing the Ecosystem, each one with its purpose.
If you leave this article with this concept imprinted in your mind, we can consider its great progress in the crypto world.
It’ll mean that more people are absorbing this idea and keeping their coins safe.
After all, it’s all about keeping one of the greatest symbols of your achievement – your money – secure.