Difference between crypto wallet and address

Crypto Wallets are usually always confused with Crypto address. We are going to use 2 different analogies to explain what they are and their differences let’s see if you understand it.

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The first analogy will be, let’s assume crypto wallet is a mansion , filled with different rooms . And you have your private key to the mansion. If you lose that key you won’t be granted access to your mansion, and if anybody has you key then can enter your mansion. Just like your physical house key you can copy the keys, so can you with your crypto wallet keys. Now you have your key that grants you access to your house, your address is like your rooms. In your mansion you have the bitcoin room, Ethereum room, litecoin room and so on. So bitcoin visitors go to bitcoin room, Ethereum visitors go to Ethereum room.

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So the second analogy will be using your physical wallet. But this analogy doesn’t involve private key because your physical wallet is not hard to open, the moment it’s out of your site, any body can access it. But let’s just go without the use of private keys. The crypto wallet is like your physical cash wallet and your crypto address is your credit card. This means that in your wallet you have bitcoin credit card, Ethereum credit card , lite coin credit card as your address. So when you want to receive bitcoin, you use your bitcoin credit card to receive it.

With these two different analogies, you can see how different they are. An address is dependent on a wallet.

Had to make this as short as possible so you can understand fully well and as a newbie I didn’t want to bore you with a lot of lengthy lingos that will intimidate you.

Posted Using LeoFinance Beta



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