Crypto Wallet – How it Works?

According to Wikipedia, a cryptocurrency wallet is a device, physical medium, program or service that stores public and / or private keys for cryptocurrency transactions. You probably don’t understand much of it, so in this article we’ll try to explain it to you in a simpler way.

What is a cryptocurrency wallet for?

Let’s start with the fact that this wallet is used to store, receive and send cryptocurrencies. Unlike a regular bank account, however, wallets do not contain information about funds accumulated on them, but only a password that allows access to cryptocurrencies. Cryptocurrencies are stored in a database we call blockchain. By having the appropriate password, we can perform a specific operation on the blockchain – for example, send or receive a cryptocurrency. A private password is a string of characters that allows you to manage your funds in the wallet. A public password is a string that anyone sending cryptocurrencies to your wallet can know.

What is a cryptocurrency wallet?

In essence, a cryptocurrency wallet is a number, called address, which is made up of a private and a public key. This number is anonymous, unrelated to the address, first or last name of the owner. Cryptocurrency transfer transactions take place between digital wallets. Each of these transactions is recorded on the blockchain, but contains information about the public key only, not the owner of the wallet. Theoretically, you can print the wallet address or write it down on a piece of paper and pass it on to another person.

As you probably guessed, this address consists of many characters and it is quite difficult to use it in the form of a printout on a sheet of paper. To make it easier for users to use cryptocurrency wallets, many tools, programs and companies offering wallet services have been created.

Types of cryptocurrency wallets.

Let’s start with hardware wallets, i.e. electronic devices on which you can store your wallet. Most often they look like a memory or a drive that you connect to your computer via a USB port. In this case, the device is most often disconnected from the Internet and stored in a safe place. You only connect them to your computer for a moment to checkout on your wallet. We call such a device a cold wallet.

Then you can set up your wallet on the Internet via a generally available, free application, eg Metamask. Sending, receiving and using cryptocurrencies is similar in this case to using any online bank account or payment system.

You can also set up a crypto wallet in a commercial company, e.g. Coinbase, which additionally offers payment cards support and cryptocurrency exchange for traditional currencies.

How to get RevenueCoin (RVC), ETH and other ERC20 tokens. Setting up a wallet.

If you are interested in a cryptocurrency wallet, you probably want to see how it works in practice and go through the entire procedure step by step. Since RevenueCoin will launch on the Ethereum Network, you will be able to participate in RVC Token airdrops to hold and benefit from our innovative tokenomics, trade or convert to other cryptocurrencies and tokens. Interesting? Let’s do it.

1. Installing and setting up MetaMask

MetaMask can be downloaded on Chrome and Firefox, or on iOS and Android if you’re a mobile user. For the purposes of this tutorial, we’ll use the Firefox version, but the instructions will be more or less the same for every platform.

Firstly, you’ll want to head over to the MetaMask Download page. From there, select whichever platform you’re using, and follow the steps to install it on your device. Easy!

Next, follow along with the setup specified by the app. Go ahead and click Create a Wallet. Write down the backup seed phrase somewhere secret (preferably not on an Internet-connected device). Without this phrase, your funds can’t be recovered if your device is damaged or lost. Confirm that you’ve written them down on the next page.

And that’s it! You should now see your wallet, ready to send and receive funds.

The freshly-initialized MetaMask wallet.
The running & freshly-initialized MetaMask wallet.

Your ETH wallet is now ready to receive ETH and ERC20 tokens like RevCoin (RVC)! Remember you will need to have some ETH in your wallet to pay for the transaction costs (Gas fees) if you want to perform a transfer or buy any ERC20 token. (since Ethereum Network requires ETH to pay for any transaction executed on it)

2. How do I get funds on my MetaMask?

You can easily buy Ethereum with a debit card or Apple Pay directly within MetaMask by clicking “Add funds”. You can also request funds from a friend by sending them a payment request showing your QR code in person or by sharing your public address. You can find your MetaMask address under account name (in the format 0x863f…6d4E) and simply copy your address by clicking on it.

When you hover over the address, a tag “Copy to clipboard” would appear.

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Wallet public address.

3. How do I transfer my existing ETH and tokens to MetaMask?

You can send ETH and tokens from another wallet to a new MetaMask account. Simply copy your new MetaMask public address and go to your existing wallet or exchange to send funds to your new wallet address.

4. How do I send ETH and tokens?

What you’ll need:

  • the Ethereum wallet address of the recipient
  • ETH in your account to sufficiently cover the gas fee

Steps:

  1. Under the Assets tab, click the token you wish to send.
Selecting the asset.
  1. Click Send on the token’s main page
  2. In the Add Recipient field, enter or paste the wallet address (0x format) of the recipient 
  3. In the Amount field, enter the amount of the token you want to send.
Entering the amount you want to send.
  1. Before clicking Next to proceed with the transaction it is a good idea to double-check the recipient address.
  2. Review the transaction detail and click Confirm to send
  3. You will then be redirected to the main page where you can see a list of your recent transactions on the Activity tab

Notes

  • The number of tokens and ETH (for gas) will not be deducted immediately. The status of the transaction is pending, which means the transaction has been submitted to the blockchain network and pending confirmation.
  • When the transaction is successful, you will see the updated amount of the token and ETH balances and the status of the transaction updated to “Confirmed”.
  • If you click on the transaction under the Activity tab on MetaMask, you can review the transaction information and have the option to view the transaction record on etherscan.io.
  • It may happen that your transaction takes longer to confirm. When that occurs, you’ll have the option to Speed Up the transaction by re-submitting the (first pending) transaction with a higher gas price; Or Cancel the transaction before it gets confirmed. 
  • This process is exactly the same for ETH as it is for other ERC20 tokens, but always make sure that when sending ERC20 tokens, that the receiving wallet supports the tokens you are sending.

For more information please refer to https://metamask.io/faqs.html 

Ethereum Network Transaction Costs

What is Gas?

According to https://ethereum.org/ ,“Gas refers to the unit that measures the amount of computational effort required to execute specific operations on the Ethereum network.”

Since each Ethereum transaction requires computational resources to execute, each transaction requires a fee. Gas refers to the fee required to successfully conduct a transaction on Ethereum.

For more information about current Gas fees, please refer to:

https://etherscan.io/gastracker

https://ethgasstation.info/

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