Understanding Crypto wallet and traditional wallets for beginners

[Z390]

In the past days, I have been victimized with questions like which wallet is the best for bitcoin from beginners around me, and I detect that they don't even understand the difference between a Wallet and a Crypto wallet.



A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

Since our cryptocurrencies and digital assets are not physically inside of our wallets, they are on the blockchain, which is a running ledger of transactions distributed worldwide. A cryptocurrency wallet is more accurately the key to accessing our funds.

As a result, our crypto is basically assigned to our Crypto wallet's private key, which allows us to access the crypto and manage it, as well as send and receive crypto, stake it, and interact with smart contracts via our wallet.

[EL MOHA]

I would say it is almost the same if we reason it logical. The crypto wallet could easily be said to be a digital one but we all know that once anyone gets access to the wallet they get access to the funds or items in it. Same thing applies to crypto wallet too, even if the bitcoin is stored on blockchain with access to the wallet you get those coins stored there. The clear difference is when someone even gets access to your keys they can easily even steal your funds without access your wallet like the traditional one that needs to be in there possession

So the way the traditional wallet needs to taken care of same way the digital wallet also needs to be secured because it is the gateway to your funds and that is why it is even password.

[Hatchy]

 Sometimes, when talking with my friends about Bitcoin or cryptocurrency I often omit the word crypto wallet and just say wallet instead. This might be because i know very well that they already gasp the point of view I'm coming from. On the other hand, when talking with a beginner, you have to relate it to them properly, so you don't get them confusing a physical wallet, for a crypto wallet. They both mean the same thing indesence that both are used for storing valuables. But at some point you have to be specific and so they would understand fully what you are saying. As for me if am talking with someone who already know cryptocurrencies very well, I usually don't add crypto before the word wallet. Except I'm being specific about the type of wallet I'm saying.

[Mayor of ogba]

In the past few days, I have been victimized with questions like which wallet is the best for Bitcoin from beginners around me, and I detect that they don't even understand the difference between a Wallet and a Crypto wallet.



A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

Since our cryptocurrencies and digital assets are not physically inside of our wallets, they are on the blockchain, which is a running ledger of transactions distributed worldwide. A cryptocurrency wallet is more accurately the key to accessing our funds.

As a result, our crypto is assigned to our Crypto wallet's private key, which allows us to access the crypto and manage it, as well as send and receive crypto, stake it, and interact with smart contracts via our wallet.

I usually use the word wallet when I am discussing crypto with my friends because they are all fully aware that I am referring to a crypto wallet and they are not new to the crypto space. Secondly, most of my friends don't make use of traditional wallets so when I mention wallets they know that I am talking about crypto wallets. Unless I am talking with a newbie in crypto I will go to the extent of calling the name of the crypto wallet like you can use a Trust wallet to store your Bitcoin and other cryptocurrencies that are supported by a trust wallet.

[_act_]

There is no reason to differentiate between wallet and crypto wallet this way. While talking about bitcoin and cryptocurrencies, people refer to crypto wallet as wallet, but refer to other wallets with something like physical wallet and digital wallet. We are talking about cryptocurrencies on this forum, so crypto wallets are called wallets, especially while referring to bitcoin becuase this is a bitcoin forum.

[BlackBoss_]

In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

You are very creative to go far by wanting to avoid the word wallet.

Many years, in cryptocurrency, wallet is a word to use. Only two main types of wallets: custodial wallet and non custodial wallet (some call it as self custodial wallet). On top of that, you can have close source or open source but they are all called as wallets.

Custodial vs Non-Custodial Wallets

[tech30338]

In the past days, I have been victimized with questions like which wallet is the best for bitcoin from beginners around me, and I detect that they don't even understand the difference between a Wallet and a Crypto wallet.



A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

Since our cryptocurrencies and digital assets are not physically inside of our wallets, they are on the blockchain, which is a running ledger of transactions distributed worldwide. A cryptocurrency wallet is more accurately the key to accessing our funds.

As a result, our crypto is basically assigned to our Crypto wallet's private key, which allows us to access the crypto and manage it, as well as send and receive crypto, stake it, and interact with smart contracts via our wallet.

I'm a bit confuse seems like they know what they are talking, people talk casually if they both have a bit of a knowledge about a certain topic, for sure he/she knows what he is talking about, maybe he is just confirming what is the best, since he is just a beginner thinking you might suggest better than what they already know, sometimes I also ask things even if i know it already to make sure I'm doing it right,
I suggest if you friends ask you something, go straight to the point on the answer, they might get confuse if you will going to tell a story of the wallets, etc., some people will take a step back if you feed them a lot of information in a single conversation, remember if they are newbies, at the moment, they will not automatically care of other things , only what they want to know first like what wallet is the best to use.

[jrrsparkles]

I would say just let it be, because once they are familiar with crypto they will come around what is actually the crypto wallet actually means.

But for newbies just keeping the wallet means you keep your Bitcoin in there, Technically it is stored in the blockchain but the wallet is the key to access so let's say it's more of an access card that we normally keep in our wallet right?

What they really need to understand is what is crypto wallet and why they should never consider exchange, or custodial services as wallets.

This compiled list from Ratimov will help them to understand about Wallets.

[Yaunfitda]

For me, if you want to be involved in crypto, that is the first thing that we should understand, the basics of the wallet because there are different kinds. And then the most important, how to protect your wallet, your private keys and mnemonic phase.

Otherwise, someone can steal your crypto if you are not attended with your private keys, so know and learn the security hygiene behind it. And as you mature, then maybe you will go to like hardware wallet and then air gap wallets, far more advanced, but the essence is still there.

[rozak]

A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

then why do you still call it a "wallet"?
Actually, there is no need to worry about that, every word used has a meaning related to the context in which we are talking about it.
when you talk to fellow people who use Bitcoin. and a friend wants to send Bitcoin to your "address". Will you provide your residence address? of course not, but you will provide your Bitcoin address.
There's no need to give him a headache when your friends ask about wallets. just answer it like a wallet in your pocket, a place to keep money.

[Coyster]

A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

I don't think there's any need to point this out, there is what's called "contextual meaning", if you are talking about fiat with someone and you mention wallet, they know what you're talking about, the same way if you mention wallet in a crypto discussion, it is easy to understand what is being said. It isn't rocket science!

like you can use a Trust wallet to store your Bitcoin and other cryptocurrencies that are supported by a trust wallet.

Yes you can do that, but you should not use it to keep your Bitcoins, trust wallet is closed source.

[Sim_card]

I don't see any important discussion here because wallet is wallet and it serves the same purpose,which is for keeping funds,either digital or physical. This is the reason why it is still called wallet. When you are talking to a novice on crypto and you mention wallet,if he is smart then,he would understand what wallet is used for. The only question that the person will ask is that is it our physical wallet. This is when you enlighten that person that because crypto is a digital currency,  therefore it is stored in a digital wallet.

[348Judah]

Cryptocurrency wallet is the safest form of using a financial wallet to have as a means through which we safe our money, the good thing about these crypto wallets is that the coins we have are but stored in them, they are stored on the blockchain, so if you think you can steal or delete the app used in accessing the funds or hack the device used, then it's all wasted efforts because coins are not on the wallet but the blockchain except on the cases of hack or leaving the private keys open to a third party, while using a physical wallet is the worst practice because it is very easy to steal from us while using it or we carelessly lost it.

[$crypto$]

This context talks about bitcoin and other cryptos so what is the difference from wallets to physical wallets? Referring to bitcoin so obviously there is no difference in calling a wallet because almost everyone says the same even though you think this is more of a traditional wallet called physical but for me this is no different.

Unless you're talking about fiat then maybe it makes sense, but now there are many fiat digital wallets that are almost the same as the other wallets we're talking about.

[Woodie]

A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

I believe the subject of what's being talked about will determine if the speaker is referring to a physical wallet or the virtual wallet we keep our coins in! Running away from the use of such a language won't help our new users to navigate the cryptoverse...tbh they need to hear more of this for them to catch on on the language and get to use it in their language too,  besides thats how we all learnt !!!

I don't see any important discussion here because wallet is wallet and it serves the same purpose,which is for keeping funds,either digital or physical. This is the reason why it is still called wallet. When you are talking to a novice on crypto and you mention wallet,if he is smart then,he would understand what wallet is used for.

Calling a spade a spade, I like the emphasis behind the definition of a wallet..no two ways about it 

I guess a bit of common sense can also guarantee one's survival in the crypto industry and such a simple test can prove this point!

[lovesmayfamilis]

OP, I'm sorry, but if I were a beginner, your topic still didn't guide me to a normal understanding of what you're trying to convey. I have always assumed that any person who does not understand the principles of any activity at all must first understand some of the basics. For example, for several years we have been using virtual money, and no one is surprised at the expression "transfer money to a card."  Likewise, if you are trying to educate people about cryptocurrencies, start with the basics and in the simplest terms. Anyone who has some knowledge of digital money is unlikely to be surprised by the word "wallet". Obviously, you communicate with those who are primarily interested in information about the Internet.

[Jon_Hodl]

A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

Since our cryptocurrencies and digital assets are not physically inside of our wallets, they are on the blockchain, which is a running ledger of transactions distributed worldwide. A cryptocurrency wallet is more accurately the key to accessing our funds.

I understand that you're trying to make the distinction but I think it's too confusing for new users. I think we all understand that Facebook is not a literal book so we don't need to rename the service to "Online repository of friends, family, and businesses". The same is true for bitcoin wallets. The term bitcoin wallet is used because people are already familiar with the concept of a wallet. There's no need to make Bitcoin even more confusing by calling wallets "cryptographic key pair storage software" or something.

A bitcoin wallet holds your private keys like a wallet holds cash or credit cards. When you want to send bitcoin, you use your private keys to sign transactions. I think that is what new users need to hear and then after they are further down the rabbit hole, we can further educate them on the technical underpinnings of what a bitcoin wallet is and how it works.

[Dr.Bitcoin_Strange]

Well, generally, they are all wallets, and when you are talking to someone and referring to your wallet, depending on the topic you both are discussing, they should be able to know which wallet you are referring to. For example, if you ask your maid to fetch your wallet from the car, she should understand what you mean. If you want to discuss crypto with someone and they don't understand what a wallet is, with just a little explanation, they should understand what it is. Just as we have the normal physical wallet to carry our money and other valuables (ID cards and passports), the crypto wallet is a digital application that is programmed to hold our crypto assets securely. Depending on the topic being discussed, one should be able to tell what kind of wallet you are referring to any time you mention wallets.

[Abu-Naim]

A WALLET in the traditional sense implies physical cash in the wallet or credit cards in the wallet. In crypto, we should avoid using the word wallet because it implies physical cash or credit cards.

Since our cryptocurrencies and digital assets are not physically inside of our wallets, they are on the blockchain, which is a running ledger of transactions distributed worldwide. A cryptocurrency wallet is more accurately the key to accessing our funds.

As a result, our crypto is basically assigned to our Crypto wallet's private key, which allows us to access the crypto and manage it, as well as send and receive crypto, stake it, and interact with smart contracts via our wallet.

The word wallet signifies a safe that can accommodate anything money or coin you want to save, and its purpose determines its name. That is why wallets that are used to store bitcoin are referred to as bitcoin wallets, while other cryptocurrency wallets are also referred to as cryptocurrency wallets.

Private keys and other security measures were made to safeguard the wallets, as it is not a physical wallet; therefore, these keys and other security measures are made to protect your bitcoin in the wallet.