Because of its anonymity, convenience and decentralization, cryptocurrency is attracting more and more people. For most people, cryptocurrency is a new area to them. Therefore, before you investing your money on cryptocurrency, there are 4 things you need to know about cryptocurrency: address, password, private keys and wallet.
We can make a comparison with bank account:
address = bank account number
password = bank account password
private keys = credit card number and password
1.Bank Account Number and Address
Everyone could open a bank account by his or her unique social security number. After setting password, you could handle the money flow of this account.
If anyone want to transfer money to you, just tell him your name and your bank account. Keeping you password secret, your account is safe.
Every cryptocurrency wallet has a wallet address, the address is like a bank account number. It’s a unique unchangeable number, with which you could accept and transfer cryptocurrency.
2.Bank Account Password and Password
Bank account password is set by user. With password, the account could withdraw and transfer money.
Cryptocurrency wallet also needs a password. The password requires more than 8 characters, which contains uppercase and lowercase letters and symbols. Remember, the password is just for open your wallet.
3.Private Keys
Private key is a random-generate 256-bit binary number. You can not get a same number, even if you using all of the computer on earth. So it is completely safe.
But there is one thing you need to know, never ever forget your password. Private key can’t be found back. You’d better write it down in case your phone or wallet lost.
4.Cryptocurrency Wallet
Like a real wallet, cryptocurrency wallet can generate and manage private keys and address, receive and transfer cryptocurrency. The one who has private keys, have the ownership of the cryptocurrency. So when you’re using a cryptocurrency wallet, watch your private keys!
