What the hell is a crypto wallet and what does it do ? Well, crypto wallet allows you to store, send and receive cryptocurrency. Yes, that’s right – pretty simple. But the most important take-away is that with crypto wallet you are fully in charge of your coins, therefore your precious coins are fully under your control & custody.
You may be surprised , but that’s not the case if you leave your coins on crypto exchange. Crypto exchange only looks like a crypto wallet from the surface, deep underneath is still a crypto exchange, a 3rd party holding the keys and control of access to your crypto. This does not sound bad until you get a notification saying “sorry, withdrawals are temporarily suspended” or email “sorry, we have bought an expensive yacht & lost your crypto”.
Your Private Crypto Wallet solves this problem. Now it’s You who is fully under control. Yes, that’s right you are !
There are 2 types of crypto wallets:
Hot wallet Hot, not because it's on fire, but because it's connected to the internet. These Hot wallets are the most common types of crypto wallets out there because they are really simple to set up and easy to use. Having said that, storing a large amount of digital assets in a hot wallet, especially in a web wallet , is not advisable as it leaves your funds exposed to potential cyber security threats via the web. The chances of you recovering your cryptocurrency are, therefore, close to zero if your wallet is hacked. Hackers typically use social engineering tactics, such as phishing scams or malicious software to get their victims to unwittingly provide them with access to their wallets. Couple links below to most popular hot wallets out now in 2022: https://www.exodus.com/ - Hot Wallet https://trustwallet.com/ - Hot wallet https://phantom.app/ - Hot Web Wallet
- Store your recovery phrase in a secure location offline, and don’t share it with anyone.
- Use two-factor authentication where possible. Two-factor authentication can provide an extra layer of security to crypto service providers, exchanges, and wallet.
Cold wallet Cold - not because it comes from the freezer. Cold because the wallet is not connected to the internet , therefore adding a big additional layer of security from hackers. In fact, Cold wallets are considered the most secure cryptocurrency storage solution. You only connect your cold wallet to the internet when you want to make a transaction, even at that moment your keys are still offline . Now, taking your crypto or NFT holdings offline helps protect from hacking and online attacks, but you can also risk losing your holdings as there is no back up to this form of storage. In short, if you misplace your cold wallet, you are simply doomed as without it you lose access to your precious investments. Couple links below to most popular cold wallets out now in 2022: https://www.ledger.com/ https://trezor.io/ Whatever choice you make, good luck, just remember:
Not your keys, not your coins
Leave a Reply