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Wallet questions and apps


Bigdognewb
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Hi, I’m new to all of this so be patient. How many coins can an app hold? How do you know the capacity of a hardware wallet? I saw something about 20 coins (penalty) if you have multiple wallets does this apply to each wallet? I bought 3 legend s wallets because everything else is back ordered....they are in shipping now.....I haven’t signed up for any accounts yet. Take me by the hand. Thank you...

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4 hours ago, Bigdognewb said:

Hi, I’m new to all of this so be patient. How many coins can an app hold? How do you know the capacity of a hardware wallet? I saw something about 20 coins (penalty) if you have multiple wallets does this apply to each wallet? I bought 3 legend s wallets because everything else is back ordered....they are in shipping now.....I haven’t signed up for any accounts yet. Take me by the hand. Thank you...

We were all new once, it's a leaning experience for everyone. Here's the thing about cryptocurrencies that most people have a hard time wrapping their heads around. The wallets don't actually hold the coins, they just hold cryptographic keys that let you sign transactions from that wallet. So there is no limit to how many coins a wallet can hold.

Imagine an Excel spreadsheet (or if you're old school, a paper spreadsheet) to keep track of how many coins everyone has. But unlike a normal spreadsheet where one person makes all the edits and updates (and could possibly cheat when no one is looking), there's a network of people across the world called validators who each have their own copy of the spreadsheet. When Alice wants to send money, she sends a note to one of the validators that says, "Send 100 coins from Alice's account to Bob's account, and here's the secret password that lets you know I'm the one who's allowed to send coins from Alice's account." The validator, then sends the message to all the other validators and if they all agree, they each update their spreadsheets to deduct 100 coins from Alice's account and add 100 coins to Bob's account. The validators make sure that each other's spreadsheets are in perfect agreement.

That's an oversimplification, but I hope it starts to get the general idea across. The wallet actually holds the keys or passwords that let you authorize payments from your address in a big ledger book that's hosted across the internet. The coins just move from one address in the ledger to another, they don't actually go into your physical hardware wallet.

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So I think the 20 XRP thing you're asking about is the wallet reserve. This is a part of the XRP ledger designed to stop people from creating unnecessary wallets. To activate a wallet for the first time you have to send it at least 20 XRP. Those 20 XRP are locked in as the wallet reserve, they can't be spent. This creates a cost to creating new wallets.

The reserve can be changed, so if XRP goes to the moon, the reserve amount can be lowered. It's not meant to be a prohibitive cost, it's meant to stop people from creating hundreds of new accounts unless they really need them.

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  • 1 month later...

Ok, thank you, that answered that question...so the wallet has an unlimited capacity? Basically... 
 

as far as transaction fees ....if I want to buy say $5000 worth of xrp.... what percentage of the $5000 would I lose in fees....my plan for right now is to buy and hold.... no trading, no selling.... based on $1 per coin. 

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The transaction fees for the XRP Ledger are really low, like .000010 - .000015 XRP per transaction. The fee depends on how busy the network is, not the size of the transaction. The XRP Ledger has a built-in decentralized exchange, but there's hardly any volume on in. So it's not practical to buy XRP on the ledger right now, but that may change in the near future.

So you're probably going to buy XRP on a centralized exchange (Coinbase, Binance, etc). You'll have to research their fees, usually trading fees are a fraction of a percent of the trade. Are you an American? If so, there are very few places you can buy XRP with the SEC lawsuit going on.

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Thanks, American yes....I’m trying to teach myself a cram corse  on this subject....it’s intimidating. Especially the new terminology.... 

I just read some stuff about off line computers and switching your wallet.... I’m confused about this. So what would be the most secure way to use a wallet?  And how would you use it off line?  

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22 minutes ago, Bigdognewb said:

Thanks, American yes....I’m trying to teach myself a cram corse  on this subject....it’s intimidating. Especially the new terminology.... 

I just read some stuff about off line computers and switching your wallet.... I’m confused about this. So what would be the most secure way to use a wallet?  And how would you use it off line?  

You picked a bad time to get into XRP. Basically, you can't use an American exchange. I'm in New York, probably the most restrictive state. I've got no options, so I'm not really up on what's available to other Americans.

I know that you can generate offline transactions and then send them later so that your wallet is never exposed to the internet, but I don't know the details of how that works. I would follow the normal procedures that Ledger recommends for using your wallet. I've never used a Ledger so I can't give you much help. I know a lot of guys swear by them. I've always used software wallets like XUMM.

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