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Decentralised wallets: Learn about crypto wallets

Decentralized-wallet-Learn-about-crypto-wallet

AuthorRevel Cheng

Reading Time3 min

PublishedJuly 2, 2024

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Headline

Context

A decentralised wallet is a type of crypto wallet that specialises in providing easy access to decentralised finance (DeFi) applications. These self-custody wallets give users direct access to their private keys. A decentralised wallet is a cryptocurrency wallet that enables users to hold their private keys on their own, ensuring they have complete control over their digital assets. The main goal of such a wallet is to completely eliminate any involvement of a third party to permit peer-to-peer (P2P) transactions.

Evidence

Pending intelligence enrichment.

Analysis

Keeping crypto in a decentralised wallet is like keeping cash in their pocket – there are no intermediaries like banks, transactions remain private, and you have complete autonomy. When users keep their money in a bank, it’s similar to storing their cryptocurrency on centralised exchanges like Coinbase or Binance. The digital wallets these exchanges provide are centralised, meaning users don’t have control over their private keys. Also read: What is wallet address in crypto? Also read: GrabPay adds crypto top-ups in e-wallet through Triple A partnership

Key Points

A decentralised wallet is a cryptocurrency wallet that enables users to hold their private keys on their own, ensuring they have complete control over their digital assets.
Decentralised wallets give users more independence, facilitating P2P transactions without relying on any other entity.