Tranz I don't quite understand why you need to specify that you want 500 keys assigned when you create a wallet. I did not do this (I didn't specify anything I just created a second wallet using buttons/menus not by typing commands. Am I going to run into a problem?
Most likely no.. Especially if are primarily staking and not much sending/receiving. You can always top up the keypool and then back it up. The larger the keypool the more keys are in you wallet, the more transactions it can do before it is necessary to back it up again.
This applies for every coin out there.
When you say back it up, do you mean back up the wallet? I back up all my wallets obsessively. Does backing it up do something related to the keys? Sorry I really am not familiar with the inner workings of coin wallets...
yes.
When you ask for a new address in the client, it does not create a new address on the fly, it takes it from the key pool most likely generated when you first created your wallet. By default it creates 100 addresses (or 101, I'm not sure).
If you always reuse the same address, you'll never use up all the keypool's addresses. But if you need let's say 200 addresses, you need to generate the missing addresses.
What happens is that the keypool will now contain 200 addresses but your backup will still have only 100 addresses. Now if something goes wrong and you used addresses between 100 and 200. They won't be backed up and you might lose the coins sent to those address.
That's why Tranz said that when you generate a new set of addresses, it is good practice to back up the wallet right after they have been generated to make sure you have in a safe place all your private/public key pair.
Try to play with the RPC command dumpwallet. You will visually see in a text file, all your keys and this will make more sense. It's also a nice way to print out your keypool and physically store it in a safe place.
