There are now over 221 million cryptocurrency users around the world. Adoption rates are highest in Southeast Asia, but a recent survey by Grayscale and The Harris Poll shows that 53% of Americans agree that “cryptocurrencies are the future of finance.” We live in a digital age. Almost all aspects of life will need to adapt, including finance. Adoption and confidence in crypto show continuous growth. Businesses are adding crypto as a payment option, as well as buying them as assets.
Cryptocurrency is decentralized digital money. It exists on the blockchain and is not tangible. It does not have a physical token, like a bill or coin. Just like any currency, individuals and entities still need to know how much they have, review their transactions, and manage their digital currencies. This is where crypto wallets come in. Martin Leinweber of MarketVector Indexes states, “Coins and tokens are part of a blockchain system in the form of data, and the wallets serve as a means to access them.”
A crypto wallet does not hold your crypto. Instead, it holds your public and private keys. The public key is just like a bank account number. You can share it with anyone, but they cannot access your money. The private key is like a password to your bank account you keep to yourself, enabling you to be the only one to have full access. If you lose your private key, you lose your crypto. A private key proves ownership and facilitates transactions.
Cryptowisser says there are 82 crypto wallets as of February 2021. They support different currencies and come in varying types. There are fewer wallet options for Monero because of its unique privacy-enhancing technology, but it is essential that those with Monero have an XMR wallet for the following reasons:
1. For secure storage of XMR
When you buy Monero from a crypto exchange, the exchange works as a custodian that looks after your XMR. You need a non-custodial wallet, so you are the only one that controls your keys. Remember this popular crypto adage, “not your keys, not your crypto.”
2. To manage your XMR
You can monitor your Monero balance and confirm transactions.
3. To send and receive XMR
A Monero wallet has send and receive features. To send XMR, you will need the recipient’s address. You will pay a transaction fee when you send Monero, much like a bank’s transaction fee when sending a wire transfer. These transactions fees go to miners who validate transactions on the blockchain and secure the network.
To receive XMR, send the string of characters in the receive feature of your Monero wallet to the sender. Some wallets have a QR code you can send to make this part easier.
4. To mine XMR
You will need a Monero wallet to receive XMR before you can start mining.
There are two main types of Monero wallets: cold and hot wallets. Cold wallets are offline. They are less convenient than hot wallets, but they reduce the risk of online threats. It is best for storing large amounts of XMR. If you intend to make Monero a long-term investment, make sure you have a cold wallet to keep them in. Some examples are hardware wallets and paper wallets.
Hot wallets are connected to the internet. The interfaces are typically easy to use, which makes it more convenient. They are best for beginners, traders, and those who send and receive XMR regularly, but are vulnerable to hacking and online attacks. Web-based wallets, mobile wallets, and desktop wallets are all hot wallets.
XMRWallet is a decentralized web-based Monero wallet. You can use it straight off any browser, even on Tor. It is non-custodial, and you have control of your XMR and keys. It does not transmit, receive, or store your 13 or 25-word seed phrase. The seed phrase serves as the password to your XMRWallet and a backup if you need to restore access to your funds. You can also use your original seed phrase to make another Monero wallet. The dashboard is straightforward and very easy to use. Enjoy all these benefits, create an XMR Wallet today. There is no KYC and you will not be required to give any personal information, expanding the privacy that Monero guarantees.