Today, most of the entrepreneurs are involving themselves in the scene of cryptocurrencies and learning about its functioning. With the extreme rise of cryptocurrencies, it has become indispensable to secure and maintain the cryptocurrency exchanges.
For storing and exchanging digital assets, cryptocurrency wallet is the only vital way for the users to have complete control over their money and can easily carry out trading without any hassle. So it is important to know about the working of crypto wallet to avoid any misunderstanding that may lead to a loss.
For easy understanding, let’s take an example of bitcoins. When a user sends a bitcoin to someone, then the sender is basically signing off the ownership of those bitcoins to the receiver’s wallet address. In order to access and spend the received bitcoins, the private key stored in the receiver’s wallet should match with the public address of the currency.
When the public and private keys match, the total balance in the receiver’s cryptocurrency wallet app will get increased and the sender’s crypto wallet app balance will be reduced simultaneously. These transactions will completely get recorded on the blockchain.