The real essence of crypto wallets

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2021-06-26 13:22:59

A cryptocurrency wallet is not an ordinary wallet for holding physical coins. Simply put, it is just a form of storing the owner’s money.

Usually, with paper money, you will use a wallet to hold it. With cryptocurrency, too, people will also use wallets to store money. It is called a cryptocurrency wallet. The main difference lies in the way the wallet is constructed. E-wallets are not used to hold physical bills but to store cryptocurrencies through an address that you can send money to. You can also use the wallet to transfer money to other people.

Currently, there are two types of e-wallets: cold wallets and hot wallets.

Cold wallet is a form of offline storage (offline), with private key, so it is very safe. With cold wallet, you completely own it. In case you want to store money for a long time, and with few transactions, cold wallets are the most suitable. Popular cold wallets include: Ledger, Trezor, KeepKey.

On the contrary, if you often transfer money and want it quickly, you can choose a hot wallet. A hot wallet is an online address where cryptocurrency holders can log in, manage and execute transactions at any time. Some typical hot wallets such as Atomic, Exodus, Jaxx, Blockchain.

Although security is also good, cold wallets can still lose money if infected with viruses or hacked to steal information.

Compared to ordinary wallets, cryptocurrency wallets are considered to be more secure and safe, and you do not have to be afraid of losing it. Most types of electronic wallets use 2FA 2-layer security methods such as Google Authenticator, or recovery characters. However, as a product of technology, the possibility of being attacked by hackers is always potential.

WARNING: Investing in financial products carries a lot of risk that may not be suitable for some investors. Therefore, please consider carefully and control yourself before making any decisions made up of the contents of this website. Also you can JOIN our DISCUSSION GROUP to discuss more about what you are interested in.

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