What is a wallet?
Ben Wallet Features:
- Send/receive Bitcoin and Ether to and from anywhere
- Easily send Bitcoin and Ether to friends who use Ben with only a phone number
- Only you can access your coins
- Coins are automatically sent from the exchange into your wallet
In this blog post we explain:
- What is a wallet
- What is a public key
- What are a private key and a backup phrase
What is a wallet?
A wallet is an application where you manage and store cryptocurrency. It’s where you access your coins to see how much you own, and where you can digitally send and receive cryptocurrency.
The most common forms of cryptocurrency wallets are hot and cold wallets. A hot wallet is an app that you’ve downloaded onto your computer or mobile phone that it always connected to the internet. A cold storage wallet, usually a USB device, holds your cryptocurrency offline. The Ben wallet is a hot wallet.
Your wallet has both a private and public key. Your public key or address is the address you use to receive cryptocurrency. This is the address you give to others so they can send you BTC or ETH. Your public key is displayed in your wallet as both a 24–35 character address and a QR code. On Ben, you can tap on the Receive tab in your Wallet screen, and easily share your public address with anyone who wants to send you a payment.
Every time someone makes a transaction, the public key of the addresses that the sender uses along with the number of coins they send, and the time they make the transaction is recorded on the blockchain.
On Ben, we make it super easy to send and receive Bitcoin or Ether from contacts who use Ben. Just look up their name or phone number and tap send!
You are in total control of your funds
The most important aspect to understand about your bitcoin wallet is that you are the ONLY person who has access to your funds. On Ben, your private key is your backup phrase and you are the only person who has it. Store the phrase safely and treat it like money.
Securing and restoring access to your wallet
In an emergency, like if you lose your phone or access to your Ben wallet, you can only retrieve your coins with your backup phrase. Ben does not store and never comes into contact with your backup phrase. It’s your responsibility, own it.
When you make a wallet in Ben, we make it easy and walk you through the creation of your 12-word backup phrase.
Your backup phrase is linked to your coins that are stored on the bitcoin blockchain. If you lose access to your phone or Ben, you can redownload the app and access your old wallet through your 12-word backup phrase.
Buying and depositing funds into your wallet
Many people use their wallet as a place to send cryptocurrency after they bought them on an exchange. It’s best practice to never leave your cryptocurrency on an exchange, historically that is where most hacks have occurred.
With Ben, you don’t have to worry about your coins being left on an exchange. Every time you buy Bitcoin or Ether on Ben, your coins are sent directly to your Ben wallet — no extra step needed!