What do users need to consider after purchasing their first cryptocurrencies?
Following the purchase of cryptocurrency, users must consider how they will store their digital assets.
After purchasing a digital asset, users will need to find a safe place to store them. The main difference is that, unlike fiat assets, which can be stored in a physical location, cryptocurrencies are digital and exist on a distributed ledger known as the blockchain.
When coins are purchased, a private key and a public key are issued. Wallets may link to several public keys, each serving as an address for funds to be sent to a given crypto wallet. While this key can be given out like an email address, its private counterpart is more like a key that unlocks a safe. The similarity with this comparison is that the very user that holds the key holds the funds inside.
While this concept might sound complex on the surface, especially to the many people new to cryptocurrency, wallets, the location where users can store their private keys, aim to make the experience more user-friendly. Unfortunately, the concept of wallets is broad, and the number of choices is diverse. This leaves the choice of how cryptocurrency will be stored to that of the user themselves.