After you have set up your crypto account and secured it, the next step is to become acquainted with its structure so that you are not confused when you start to use it.
Lesson 1.0.0. Four Facts About a Crypto Wallet
Before we look at the basic structure of a crypto account, note the following four facts about a crypto wallet:
1. Each wallet is specific for a cryptocurrency.
That means a Bitcoin wallet can only receive and hold Bitcoin; an Ethereum wallet can only receive and hold Ether coins. Therefore, if you send Bitcoin into an Ethereum wallet, that Bitcoin will be lost, and you may not be able to retrieve it. This specificity applies to all cryptos.
2. The public key of your wallet is like the address to your house.
Hence, a public key is popularly referred to as a wallet address. This wallet address is simply a combination of letters and words that are uniquely arranged.
For instance, every Bitcoin wallet address contains between 26 and 35 alphanumeric characters. Other cryptos may have shorter or longer alphanumeric characters.
Here is an example of a Bitcoin wallet address:
bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq
3. When using a wallet address, you MUST copy or type it exactly the way it appears.
If you miss any character, your crypto will be lost, and you may not be able to recover it!
It sounds brutal! Doesn’t it? That is the reality of cryptos. The use of crypto places enormous responsibility on the user to be very circumspect.
4. Some exchanges change wallet addresses from time to time.
Therefore, always make sure you are using the correct wallet address each time you transact.
Tips and Warning!!!
• To ensure you are using an accurate wallet address, always check the first four and last four characters of the wallet address before you authorise any transaction.
• If you are drunk with alcohol or feel quite tired, it is better not to carry out any crypto transaction until you are sober or feeling much stronger. Besides scams, a large amount of cryptos is lost each year due to using wrong wallet addresses.
• Remember, your cryptos are your digital assets and must be treated seriously like any other assets of value!