A Cryptocurrency wallet is a safe, convenient virtual wallet used to safely store, transmit, and receive various virtual currencies. Most virtual currencies are backed by real assets such as gold, money, or digital certificates. However, there are some that are not backed by any assets. This is what separates the various virtual currencies from each other and from normal wallets. In this article, we will discuss the differences between a traditional wallet, a Cryptocurrency wallet, and a self-hosted one.
Since Cryptocurrency is not backed by tangible assets, transactions made within it are much faster and safer than with regular cold storage. Transactions with Cryptocurrency can be sent to any compatible computer that has an Internet connection. Most of the time, the transactions are made through hot wallets or through cold storage.
With a Cryptocurrency wallet, you will not have to share your wallet information with anyone else. For example, with cold storage, your private key and password can be stolen by another person. When you make transactions with Cryptocurrency, no one can see your private key. However, since you are using a private key, if you happen to lose it, there is still hope. You can recover your seed with the help of recovery services offered by different Cryptocurrency wallets.
A major advantage with using a waves coin wallet is that you do not need a third party to run a backup of your private key or redeem a recovery seed for you. This is because all transactions with Cryptocurrency are managed and tracked by the specific application of the specific Cryptocurrency wallet you are using. Most of the popular and reputable Cryptocurrency wallets provide backup and recovery services. In case you lose your wallet application, you can easily get a replacement from the provider or you can also get a recovery disc from the service provider.
An atomic wallet, on the other hand, is a type of Cryptocurrency wallet which uses an offline backup facility. The offline backup facility of an atomic wallet is usually done through the Internet and this is very convenient as you do not need to trust the privacy and confidentiality of the server where your transactions are handled. Even though an atomic wallet offers better security than other types of Cryptocurrency wallets, it is unable to provide you with an extremely fast transaction speed and it does not help you in case of loss of your private key and recovery seed. It also costs a lot less compared to a Cryptocurrency wallet that offers a remote access feature for users who are in another location.
These two forms of wallets, however, differ in terms of their support for Meta Codes. A Meta-Code is a special kind of encrypted code that is included in all transactions that are made with your Cryptocurrency wallet. A Meta-Code is used to help you make sure that the right owner had transferred your money in the correct manner. A deterministic wallet, on the other hand, requires you to have access to your private key before it will encrypt any Meta Codes. This feature is more secure compared to a Meta Code since your private key and funds are not at stake, if there is a mistake made.