A cryptocurrency wallet is a digital wallet in which you are able to store your cryptocurrency. For every kind of cryptocurrency, you will need a different wallet. All cryptocurrencies are based on separate systems which do not communicate with each other. So has every cryptocurrency its own blockchain network.
This is the reason why you will need to create a different wallet for every cryptocurrency.
For example, do not try to send Bitcoin to a Ripple wallet. You will be at risk to lose your cryptocurrency.
LiteBit offers for a large amount of cryptocurrency their own online wallet. You can easily start using this after creating a LiteBit account. For a LiteBit, wallet you will not need to install or download anything.
Benefits of using a LiteBit wallet:
- No software required.
- You do not have to download any Blockchain.
- Easy withdrawals and deposits to/from other wallets.
- LiteBit wallets are free to use.
- Sell your cryptocurrency directly.
Do you want to know how to use the LiteBit wallet and how it functions, read more here.
Other wallets, next to the LiteBit wallets, created by other parties exist as well. These “external wallets” can be divided into two types.
- Online website wallets/Hosted wallets
These wallets are, just like LiteBit wallets, managed and stored on external websites. You will not need to install software on your device.
These wallets are susceptible to fraud, it is therefore really important to find out beforehand if the website is trustworthy.
- Self-managing wallets
Examples of self-managing wallets type, are desktop wallets and cold wallets. For a desktop wallet, you need to download and install specific software on your computer. A desktop wallet needs to be updated on a regular basis in order to be fully synchronized to the blockchain. When the desktop wallet is not up to date, recent transactions might not be visible in the wallet.
Next, there are also “cold wallets”, these wallets are not connected to the internet. This ensures that nobody is able to enter your wallet until you connect this to the internet.
More information about cold wallets can be found here.