Choosing a crypto-wallet for your Web3 journey. (Part 1) -Understanding wallets

What exactly is a cryptocurrency wallet and how does it work?

Interacting with web3 and blockchain technology typically requires you to have a wallet. In this series we will learn about the different kinds of wallets to understand the use-cases of each one. But we can't learn about the different types without first gaining some insight into what exactly is a crypto-wallet

A cryptocurrency wallet is created by randomly generating a number, then using a set of instructions to encrypt that number. The result of the encryption is what is called a private-key. As you might have guessed, private-keys are not to be shared! What you can share is your public key, generated by running another algorithm on your private key.

Private keys prove your ownership of your funds and assets, just like a password proves that you own your social media and bank accounts. Anyone asking you to share your private key is attempting to scam you. Keep this in mind because scams are unfortunately quite common with new technology blockchain isn't any different.

Think of public keys as, like a mailbox with your home address, it allows anyone with the key to locate you and send you information.
Public keys are also traditionally used in asymmetric cryptography. People would share the key with an individual that will use it to encrypt messages intended for the key owner. The only way to read messages encrypted with a public key is by using the private key to decrypt the information.

A cryptocurrency wallet will then be at the center of everything you do in Web-3, connecting you to the world and providing you with the means to send, receive, trade, and own digital property from anywhere. This technology democratizes and decentralizes finance, lowering the barrier of entry to the flow of money to memorizing a set of 24 characters or words. Finding and creating a wallet that fits your needs is the first step in gaining financial and digital freedom.
In the next post, we will discuss the different types of wallets. So that by the end of this series you can confidently choose your wallet to begin your web-3 journey.

Read part 2 to learn about the different wallets, and which one could be right for you: Part 2: Choosing a type of wallet