This sounds like a Crypto 101 question, only fit for complete noobs. But recent events, prompted by the payouts from noise.cash, highlight that even people with some experience may not be fully aware of what goes on "under the hood".
The actual language we use exacerbates misunderstandings. We talk about "the coins in our wallets" and yet, in reality, the coins are NOT in your wallet - at all.
Your coins reside on whichever blockchain issues those coins. They are your coins because you hold ALL the required keys and passwords. "Not your keys, not your coins." is one of the few truly true truths in crypto!
Thinking that a wallet holds your coins is like thinking your bank card holds your money. Your money does not reside in your plastic card, it (hopefully) exists in a bank database. Your card gives you access to a set of functions to manage your money.
Your crypto wallet is somewhat similar to a card in that it gives you access to some functions that are too difficult for most people to perform directly with a blockchain. Compare the difference between using blurtwallet.com and a CLI (command line interface) wallet. However, a card without some interface has very few other uses.
A wallet is actually much closer to a digital ATM, with your card being the permission-keys to access your account. Your physical wallet may well have a number of plastic cards in it, from different banks and loyalty schemes. Putting a shopping mall loyalty card inside an ATM may prove to be a futile experience. However, many bank ATMs will accept cards from other banks, though often for a fee.
Although it may seem so convenient to have one multi-purpose card that does everything, be careful what you wish for; we may be there sooner than you think - and not for your benefit.
And so, different wallets do different things. Some are specific to one coin, such as your BlurtWallet, while others manage multiple coins. But they are all really coin-management services.
However, not all wallet-services are equal - some are more equal than others. Most wallet-services are "non-custodial", meaning that you have full access to all the keys, even if that account was created for you when you first logged in. Your keys, your crypto. Should that wallet-service disappear, you would still be able to access your coins through another service by verifying your private keys. The wallet-operators make their money from transaction fees and possibly other services such as staking.
But there are some "custodial" services too, where you essentially give up control of your coins to the wallet-operator. There may be good reasons for doing so but, as a user, you should know about this before using such services. You may not even notice this until you look for your private keys and can't find them anywhere.
BitGo is the largest provider of such custodial services - you may be surprised at what you find there. Remember that the large centralised exchanges all take custody of your tokens - try finding your private keys on an exchange.
I'm going off at a tangent here, but couldn't resist this bit of corporate laxative:
No matter what exchanges, OTC desks, or brokers you use for trade or what custodial services or wallets you use for custody, BitGo ingests and resolves your present and historical transactions automatically to unlock holistic views across performance, positions, and tax.
I hope you ingest, and digest, how much control you have over all your assets.
Please vote for my witness account @busbecq.
Can be done directly here.
Thanks!
I was able to figure out about the wallet not really being a wallet when I read of using paper wallets. Obviously the paper isn't a wallet and can only direct you to where the real place holding the coins would be.
I've never used a wallet other than the ones attached to Steem, Hive, Blurt and a couple of exchanges. Of course, the Steemjack that Sun pulled off with exchanges "borrowing" from the wallets of the real owners without asking shows those are not secure wallets, lol.
I really am wary of wallets and if I ever have need of one I would have to see if there was a paper option. I'm wary of the hardware wallets being hacked.
many people forget their 4-digit PIN. lmfao
imagine managing dozens of keys?
can be done, but is a real pita
Hah, I'm almost that bad. I do remember pins, but this handling of so many different keys is a pain. I finally rusted my keys in the Hive keychain, only because I've about run out of value there and don't see building anymore there. Its a worry keeping them off the computer, and then having a backup in case something bad comes of the first method of storage you have. Couple that with needing to keep codes for 2 factor and everyone trying to force you into either their spying app or online portals and I hope one day to have enough money to get a place in the middle of nowhere and ditch most all of this. :)
Especially the more I read that history on electricity and life.
Agree - I have very few "apps" - I have a computer! I decide if I want their latest buggy upgrade. It also works on ethernet, not wifinet. :-)
I think down the road I'm going to bite the bullet and use a drive that has no windows on it, installing Linux (which I've never used before). I've researched Linux a little bit and know to stay away from popular versions like Ubuntu as it appears to also have some spying built into it as well.
I need to get a regular modem when I move in a few months and figure out how to run ethernet cables discreetly. I'm hooked up myself with ethernet, but the cable company here only provides wifi and my partner uses that. I've been educating her on the danges of EMF recently and talked her into installing one of those EMF readers you mentioned in another comment. She is beside herself on the levels we are experiencing. So thinking she will be more open to wire when we move.
Lately I've been using my voting power to much, yesterday having run it down to 60. I need to let it recharge so I'm upvoting you today directly in the wallet.
No harm in being at 60% VP - really depends how much BP you have - do a mental calc to make sure your effective BP is above at least 3000 as votes drift down very quickly to zero.
eg if u have 100k BP and voting at 60% you're still voting with 60k power :-)
It's something I'm OCD about. The primary draw of this system to me is being able to give upvotes that have value to others. The icing on top being of course being rewarded myself for having these gestures with others.
When I first started at Steem the value was still in the 4.00 range, quickly to slide to 2.00 then 1.00 then pennies.
But I was amazed at the values being given to so many accounts via upvotes. Especially by some very kind hearted stakeholders. I was drawn myself into the family protection group, both voting many of the folks spotlighted there who were targets of CPS and struggling financially. To donating probably 15-20% of my earnings there to them to strengthen their project. I watched them help families financially be able to buy diapers, food, pay bills and such and I was both in awe and humbled to be part of such a noble endeavor. One where we could see for ourselves the real impact our actions held for another.
This system allows so much power for those of a generous heart. And the greater ones stake and voting power, the more impact one (I) can have in this regard.
Great work! I plan to do a dossier and will integrate this.
Congratulations, your post has been curated by @r2cornell-curate. You can use the tag #R2cornell. Also, find us on Discord
Felicitaciones, su publicación ha sido votada por @ r2cornell-curate. Puedes usar el tag #R2cornell. También, nos puedes encontrar en Discord