To buy and sell NFTs you need a Crypto Wallet. These do not store the NFT or digital image, which are stored on the blockchain and IPFS (or similar) respectively. A wallet stores public and private keys which enable transactions. To illustrate this, think of the public key as a bank account number. This can be given to a third party who can send funds to that number. While the private key is like a credit or debit card security pin i.e. something only you know with the power to release funds. In the same way you must always keep a pin number secret, a private key must never be given out as anyone with access to both this an the public key can access and use all of your funds.
There are four types of Wallet:
- Web – these are called Custodial Wallets where the private keys that control assets are kept by a third party and your wallet is accessed via a web browser. This is the most convenient type of wallet but least secure.
- Mobile – these are mobile apps for Apple IoS and Android smartphones. They store the private keys that control your assets on the phone, so you must ensure your mobile device is kept secure.
- Desktop – similar to Mobile Wallets but these are programs installed on Windows and Apple computers. Again, you need to ensure your computer is kept secure.
- Hardware – This is the most secure type of wallet. They are only connected to the internet when making a transaction, the rest of the time they are offline, which makes your private keys safe from hackers.
