How to use Virtual Money Wallet? Getting Started with the Basics

In the world of cryptocurrencies, using a virtual currency wallet is one of the basic skills that every investor must master. Whether you are using it to store, receive or send cryptocurrencies, the way your wallet operates is crucial to the safety of your funds. In this article, we will introduce the basic operation of virtual money wallets, from how to create a wallet to the steps of making transactions, to help Taiwanese users get started quickly and use virtual money wallets safely and efficiently.

What is a virtual money wallet?

A virtual money wallet is a digital tool used to store, manage, receive and send cryptocurrency. It is not a real "physical" wallet, but rather a set of encryption keys that form a digital identity. These keys are divided into public and private keys, with the public key being used to receive funds and the private key being used to sign transactions and protect the security of transactions. Therefore, protecting the private key is the key to ensuring the security of funds.

There are two main types of virtual money wallets: hot wallets and cold wallets. A hot wallet is a wallet that is connected to the Internet, which is convenient for daily transactions but less secure; a cold wallet is not connected to the Internet and usually exists in the form of a hardware wallet, which is more suitable for long-term storage and is more secure.

How do I create a virtual money wallet?

The process of creating a virtual money wallet is not complicated, and the basic steps are as follows:

1. Choosing a wallet: First you need to choose a suitable virtual money wallet. Common choices include mobile wallet apps such as Trust Wallet, MetaMask, or hardware wallets such as Ledger, Trezor, and others. Choose the right type of wallet for your needs.

2. Download and install wallet apps: Download and install wallet apps from official channels and be careful to avoid using wallet software from unknown sources to prevent fraud.

3. Create New Wallet: After launching the app, select the "Create New Wallet" option and follow the steps to set a password or PIN. This step is very important because if you lose your password, you will not be able to retrieve the money in your wallet.

4. BACKUP HELPING WORDS: The wallet will provide you with a set of 12 to 24 words that are the only way to recover your wallet. Keep it safe and do not share it with others.

5. Validate Backups: Validate the helpers according to the requirements of the wallet to ensure that the backups are correct and to complete the creation process.

After completing the above steps, your Virtual Money Wallet is set up and ready to use.

How to send and receive funds using Virtual Money Wallet?

Once your virtual money wallet is set up, the next step is to learn how to send and receive funds.

Receiving funds

1. Open your wallet application and find the "Receive" option.
2. Select the type of cryptocurrency you want to receive (e.g. Bitcoin, Ether, etc.) and the wallet will display the corresponding public key address.
3. Copy this public key address or share it directly with the sender using a QR code.
4. After the sender transfers the funds to your wallet, you can check the transaction in your wallet.

Sending Funds

1. Select the "Send" option in the Wallet application.
2. Enter the recipient's public key address or scan the QR code provided by the other party.
3. Enter the amount to be sent and the transaction fee.
4. Follow the prompts to confirm the transaction and sign with your private key.
5. When the transaction is confirmed, the funds will be deducted from your wallet and sent to the other party.

Please be sure to check the address and amount of each transaction carefully, as cryptocurrency transactions cannot be undone once confirmed.

How can I secure my virtual wallet?

The security of your virtual currency is of paramount importance, here are a few tips to keep your wallet safe:

1. Backup Private Keys and Helpers: Keep your wallet's private keys and helpers in a safe place, e.g. write them down and store them in a fireproof, waterproof place. Do not store them in the cloud or in digital form to avoid hacking.

2. Enable Double Authentication: Many virtual money wallets offer a double authentication (2FA) feature, and it is recommended to enable this feature for added security.

3. Choose a hardware wallet: If you hold a large amount of cryptocurrency for a long period of time, it is recommended to choose a hardware wallet (e.g. Ledger, Trezor) to store your funds as they are not connected to the network, which greatly reduces the risk of being hacked.

4. Beware of phishing attacks: Avoid clicking on unidentified links or installing unidentified apps, which may allow your wallet information to be stolen.

FAQ: How do I recover my virtual wallet?

In some cases, you may accidentally lose or forget your password, and then you will need to rely on a backup aid to recover your wallet.

1. Open Wallet App: Download and install the appropriate wallet application and select the "Restore Wallet" option.
2. Input Aids: Follow the prompts and enter the auxiliary words in your custody in the order in which they appear. The wallet will then regenerate your private key and restore your funds.
3. Set new password: After successful recovery, you can set a new password or PIN to protect your wallet.

If you have chosen a hardware wallet, there are usually similar recovery steps, except that you will need to plug in your hardware wallet device to do so.

Conclusion: The Basics of Virtual Money Wallets

Learning how to use virtual money wallets is a necessary skill for every cryptocurrency user. From creating a wallet to sending and receiving funds to securing them, these basic operations are the foundation of cryptocurrency transactions. Make sure you choose a secure wallet, keep your private keys and helpers safe, and take precautions to avoid attacks. As you become more familiar with wallet operations, it will become easier to manage and use your cryptocurrency.