Noku Academy

Who is responsible for crypto wallets?

Storing cryptocurrency in a digital wallet is a must-do to safely protect your investments.

Millions of people have joined the cryptocurrency universe in the last few months. However, most of them are not used with safety issues surrounding the blockchain: the blockchain is a public and distributed ledger, everyone can explore it but nobody can be in control of it.

The technology is based on an asymmetric cryptography, a system that uses a pair of keys: a private and a public one.

Not easy at all so, before you launch into this new trading adventure and create your first wallet, read this:

First of all: what is a cryptocurrency wallet?

A cryptocurrency wallet is a program or interface that enables users to send ad receive digital currencies and it also contains data that identifies you as the owner. These data are: one public key (or address) and one private key.

The ownership of your cryptocurrencies is tied to the possession of these data. These keys are the only way to access and manage your wallet.

When you are sending Ethereum, NOKU or any digital currency to a person, you are basically signing off ownership of the coins to your wallet’s address.

Unlike traditional ‘pocket’ wallets, digital wallets do not phisically store funds. In fact, your currencies will not be contained in any single location or exist anywhere in any physical form.

Basically, the only things that exist are the records of the transactions stored on the blockchain.

Would you ever walk around hanging out with your real wallet? Or store the PIN of your Bank account in a piece of paper in your pocket?

I don’t think so. For the same reason, you need to be conscious of doing the same with your crypto wallet: if someone can steal your private key, your fund is gone forever.

 

You are the one and only responsible for your fund safety

As a result, every single person becomes individually responsible for their wallet’s security. It’s decentralization, folks!

That is why choosing the right wallet do become a crucial choice.

There are too many websites which look good and legitimate but they might be scamming you. You need to take care of security.

 

To easily create your first Noku Wallet and start managing your funds, check out our previous post.

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