This is Crypto Jargon with myself OJ Jordan In today’s episode: What is: This episode is sponsored by Ledger Maker of the best hardware wallets on the market Their devices support more than a 1000 crypto assets So you safely store all of you tokens and coins in a robust, cold storage and truly be the owner of your private keys and have the best protection against hackers To find out more about it, check out the description of this video where you will find the link and my tutorials on the Ledger Nano S and Nano X devices Let’s start with Addy First of all, today’s terms are all interlinked, hence why I have bundled them together here in this episode. If you’ve seen the other episodes from these series you’ve probably heard me use
Addy or Wallet Address more than a few times… Well, Addy is in fact short for Wallet Address, for example meaning, “give me your crypto wallet address and I will send you the money”. So “wire” in this respect refers to online transacting, sending money digitally. Which leads me to What is a wallet? and why Address? You see, in crpyto we use digital wallets to store our coins… well, figuratively speaking actually, because technically we don’t store the coins there but more about that in a moment. So, figuratively speaking, we use digital wallets in the same way we use physical wallets for the fiat money that we still use in the physical world. Many people call these “real money” but I’m sure during the next few years it will become clear that our digital coins are just as real as the paper money that we use today So a digital wallet is basically a piece of software that helps read information about the user’s digital coins In order to send and receive coins, you need to use a long string of alphanumeric characters (usually 26-35) which is known as your wallet address It can also be represented as a scannable QR code. I explained the QR code in a previous episode of the Crypto Jargon it is linked here. There are a few types of cryptocurrency wallets: Software Wallets which are apps and programs you download these on a desktop or laptop computer. Mobile Wallets applications on your smartphone or tablet. Web Wallets which are stored on third-party servers via cloud computing. These can be accessed by any computing device and are known as “hot storage”. You also have Paper Wallets (known as cold storage) yes you can even generate a digital wallet that can be printed out as a hard-copy for safekeeping in physical form. I have a tutorial about that too, check out the pop-up here And I’ll also drop the link in the description box so you can see how this works. And there’s also Hardware Wallets (also known as cold storage). These are devices like these 2 here, that store the private keys of the user and access all the information related to these private keys on the relevant blockchains. Let’s explain what private and public keys are, so you can get the full picture. I’ll refer to Bitcoin as an example since it is the most popular crypto. I mentioned earlier that you don’t actually store your coins in the wallet. So where do you store them then? Technically you don’t store them or maybe I should say that “store” is not the most correct term to use, because your coins exist only as the sum of inputs and outputs which are recorded on the blockchain as a series of linked transactions. So technically, your coins are re simply digital data recorded and stored on the blockchain, they’re not inside any wallet. What you actually do when you use your wallet client, is that you actually access that data with your private and public keys. A private key is a unique identifier code used as a digital signature that connects you – The User to the data stored on the blockchain (in other words, the amount of cryptocurrency that is allocated to that code). It acts as a wallet identifier and is the most important piece of code you need, so it has to be kept in complete secrecy. Anyone who has access to that private key technically has access to the data/ coins that it protects. A public key is derived from the private key and is in fact the wallet address you provide to others in order to receive cryptocurrency. The public key is a way to identify someone making a transaction, even though their actual name or personal information is not embedded in the key itself. This is basically your Addy. Also, note that for your own protection (depending on what wallet client you use) that wallet address might change after every transaction. This shouldn’t worry you, because these public wallet addresses are derived from your private key so all of them will always work. I have a video explaining that too, link will be dropped in the description below. Ok, so to wrap this up, your crypto wallet consists of two main pieces of code known as private and public keys. These are connecting you to the blockchain where the information about your digital coins is recorded and this is how you “store” your cryptocurrencies. And this is why it is very important to use wallets that give you ownership of your private keys. The most secure wallets are paper and hardware wallets because they give you ownership of these private keys while most of the cloud services (aka Hot Wallets) are custodials of your private keys and they can censor you and lock you out of your wallet. These are services like Coinbase.com and pretty much all the exchanges for instance, which are government-regulated and must comply with AML requirements and are known to freeze or close users’ accounts when there’s any suspicious activity. Also, they can get hacked and that happens a lot in the online space, so really, to keep your cryptocurencies safe in the long run, I recommend using hardware wallets. I hope this is helpful, and this is all for today’s episode, Click on that LIKE button, for my new viewers – hit the “Subscribe” too and don’t forget to turn on the notifications so you don’t miss an episode, there’s many more to come so watch this space. Enjoying this content? Why not grab a copy of my book: Crypto Jargon A-to-Z The most thorough dictionary that exists to date it contains all the crypto terminology you need Just go to www.ojjordan.com/cryptojargon and grab your digital copy today. …and 1 more thing… Announcing My Special Summer Giveaway Yes, to celebrate the arrival of Summer I’m doing a special SUMMER GIVEAWAY on my Youtube Channel for all of my subscribers. I’d like to get to know YOU better and I want your feedback on my content. In return, I’m giving away not 1, not 2 but 10 great prizes. 5 x physical Revolut Debit Cards REvolut is an online bank with zero fee conversion of all major currencies Including Bitcoin and Ethereum and it’s my favourite card to use on my travels Also, I’m giving away crypto prizes: $50 worth of Bitcoin
$50 worth of Etehreum $25 worth of Litecoin
and $25 of DASH …and the GRAND PRIZE: My Favourite Hardware Wallet device:
The Ledger Nano S Compact, secure and anonymous, the Ledger Nano S is everything you need to store safely your long-term crypto holdings. For your chance to win, all you have to do is: Like and comment on all of my videos from now until August. when I will select the winners. You also have to be a subscriber of course,
but it’s free to subscribe so this is you r chance to win these fantastic prizes.