The true essence of a crypto wallet
A cryptocurrency wallet is not an ordinary wallet for storing physical coins. In other words, it’s just a way of saving the owner’s money.
Usually, with banknotes, you use a wallet to store them. Even with cryptocurrencies, people will use wallets to store money. These are called cryptocurrency wallets. The main difference is the way the portfolio is built. Electronic wallets are not used to store physical bills but to store electronic money through an address that you can use to send money. You can also use a wallet to transfer money to other people.
Currently there are two types of e-wallets: cold wallets and hot wallets.
Cold wallets are a form of off-line (offline) storage with private keys and are therefore highly secure. With a cold wallet, it’s all yours. If you want to keep money for a long time and make few transactions, cold wallets are best suited. Popular cold wallets include: Ledger, Trezor, KeepKey.
On the other hand, if you transfer money frequently and want it fast, you can opt for a hot wallet. Hot wallets are online addresses where cryptocurrency holders can log in, manage and transact at any time. Some typical hot wallets like Atomic, Exodus, Jaxx, Blockchain.
Although security is also good, cold wallets can still lose money if they are infected with viruses or hacked to steal information.
Compared to regular wallets, cryptocurrency wallets are considered safer and more secure and you don’t have to worry about losing them. Most types of e-wallet use 2-layer 2FA security methods such as Google Authenticator or recovery tokens. However, as a product of technology, there is always the possibility of hacker attacks.
WARNING: Investing in financial products involves many risks which may not be suitable for some investors. Therefore, please think carefully and check yourself before you decide to link to this website. CryptoViet.com.