To understand what an altcoin wallet is, we first need to understand what an altcoin is. When bitcoin exploded onto the scene, people became very intrigued by this cryptocurrency as well as the topic in general. Since then a number of new cryptocurrencies have been created and they continue to gain momentum and value as the demand for them grows. These new alternative coins (alternative to bitcoin) are known as altcoins.
What Cryptocurrencies Are Supported By Altcoin Wallets?
There are many altcoins available today, some of the most popular altcoins being: ethereum, litecoin, zcash and ripple. Some altcoin wallets are geared towards only one or two altcoins, as well as bitcoin in most cases, but others are multi-coin wallets that offer service to a number of different altcoins at once.
The altcoin wallets work in the same way as bitcoin wallets in that they store the very essential and important private key that is necessary for making transactions. It doesn’t store the altcoins themselves, as these don’t actually exist anywhere.
As with bitcoin wallets, the essential information needed to make transactions is stored within the altcoin wallet until it’s needed to trade, buy or sell the altcoins. The altcoin wallet is a security precaution that protects the user’s altcoins by protecting the private key needed to transact with them.