A cryptocurrency wallet is a digital wallet in which cryptocurrencies can be stored. All different cryptocurrencies are separate systems that do not communicate with each other. Therefore, every cryptocurrency has its own network and a unique wallet(address).
This is the reason that a new wallet must be created for each cryptocurrency. For example, a Bitcoin cannot be sent to an Ethereum wallet. Are you trying to do this? Then you have the risk that your cryptocurrencies will be lost.
There are different types of wallets. Two examples are:
These wallets are managed by an external party (host). The user does not have to install software to store cryptocurrency. Sometimes these parties charge a small amount for the use of these wallets.
We offer a wallet for a large part of the cryptocurrencies on our platform. In the future, we strive to make a wallet available for every cryptocurrency. At the moment this is not possible due to the complicated technology behind each blockchain. The wallets can be found in a central location: The LiteBit wallet.
The LiteBit wallet has several advantages:
The desktop wallet and the cold wallet fall under 'wallet in own management'. For a desktop wallet software has to be installed. A desktop wallet must be regularly synchronized to stay up-to-date. If a wallet does not synchronize with the blockchain, not all transactions are visible.
A 'cold wallet' is not connected to the internet. This wallet can receive cryptocurrencies offline but only send it again if the wallet is online. The LiteBit wallet is also a cold wallet. This means that the cryptocurrencies in the LiteBit wallet are stored offline.