Crypto Wallet vs. Crypto Address: What are they?

Introduction

The term wallet often creates an unnecessary confusion among beginners who think that it is the same as address. However, crypto wallet and crypto address are two different things. Here, the difference between them will be explained in layman terms and Bitcoins will be used as an example. The concept can be applied to other cryptocurrencies as well.

Bitcoin Address

An address is a unique key or ID where you hold your Bitcoins. It is a combination of alphanumeric characters which usually begin with 1 or 3. Example: 3GUHMnx47raxdKGyAvgQGHUYH8h1xhFA2L. What does this mean? It represents a public key and is a destination for bitcoin payments. Each public key has a private key to move bitcoins out of the address. 

Analogy

Just like how you can share your email address and bank account number to receive payments, you can also share your bitcoin address to receive bitcoin payments. Take the private key as your bank account password. Without the password, one cannot make transactions from the bank. Likewise, the private key in bitcoin address is used to sign transactions and prove ownership.

Pro tip:

Bitcoin address can be shared publicly to anyone for others to send Bitcoins to your address. Private key is to remain confidential as anyone with access to it can retrieve all your cryptocurrencies, just like how anyone with your bank account password can withdraw all your funds. 

Bitcoin Wallet

Bitcoin wallet is an application that contains a collection of bitcoin addresses (public key) and private key. Besides offering a convenient way to manage multiple keys, it is also used to create transactions. How does this wallet work? It first communicates with the network when you want to send bitcoins. Next, it checks the list of addresses in the wallet that contain the balance amount and combines them. Afterwhich, it creates a signature using the private keys and broadcasts the transaction to the network. 

Pro tip:

Coins are not stored in a wallet, but on blockchain. The same concept applies to emails which are actually stored in the email server and not in the users computer. Just like email, bitcoin transactions are a one way trip. Once sent, you can only get it  back if the receiver voluntarily sends the coins back. The same applies to receiving bitcoins from others to your address.

Conclusion

Now that you are aware of what crypto wallet and crypto address is, as well as their differences, you can make better informed decisions of digital assets. The cryptocurrency world has a lot more for you to explore, so start today. 

NEED A SECURE CRYPTOCURRENCY WALLET?

Introducing LinqCash. LinqCash is a Payment Gateway Wallet, it offers a user-friendly interface that is easy to use even for beginners.  Its secure data encryption method ensures your data remains private. On top of the positive reviews online, LinqCash provides a competitive rate for cryptocurrency transactions. So, how do you get started using LinqCash? 

• Sign up at LinqCash so you can be assigned a cryptocurrency Wallet
• Once done, just transfer your Bitcoin to your LinqCash wallet address

In conclusion, for a fast, effective, and secure cryptocurrency transaction, sign with LinqCash and experience fast and secure cryptocurrency transactions today!

Disclaimer: The blog content above does not constitute financial advice in any way whatsoever. Nothing published by LinqCash constitutes an investment recommendation, nor should any data or Content published by LinqCash be relied upon for any investment activities.

LinqCash strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.