You can use different types of bitcoin holders to keep your cash, coins, bills and documents. Similarly, you need to use a storage space to keep your crypto safe. Crypto wallets are similar to your banking wallets, and you can use your wallet to make online transactions with crypto currencies.
Crypto wallets are popularly known as digital wallets where you can store your currencies and digital assets. You can use a wallet to store multiple digital assets like bitcoin Ethereum, USDC and other currencies. But you cannot store your currencies on your wallets, you can store your keys in your hot or cold wallets. You can use such keys to access your crypto account through your wallet. And, the available two types of keys available are private and public keys. Private keys can be used for transferring funds from your account to another account and you can share your public keys to receive funds from another user.
Things to know about crypto:
Before you choose a wallet, you need to know about crypto currencies. as we know, these are the new digital assets which has a decentralized base. The technology it uses is called the blockchain. Here, everything is transparent and you can find all the transactions records made with crypto stored in a public ledger. There are more than 4500 crypto currencies available, and bitcoin, Ethereum and Alt coins are the most popular among them. You can buy and sell these assets through an exchange, like you do with stock exchanges, and you can keep your currencies safe in a wallet. Earlier, crypto used treated as assets, but now many businesses are accepting these currencies as a payment mode. So, you can use your digital currencies for buying services and goods. But if you hold such currencies fora real long time, stands the chances of getting a high return. You can try and invest, or buy cryptos in Bitcoin Era. Many people these days are trusting it with their assets.
Hot and cold wallets to keep your currencies safe:
There are two types of wallets available for crypto currencies, such as hot and cold wallets. Hot wallets are based on software, and you can use it in a form of mobile apps. Apart from that, you can use such hot wallets in your mobile, laptop, PCs and cloud server. According to the experts, hot wallets are prone to be hacked because your wallets are exposed to the web and hackers can easily hack your software-based wallet from a third-party application.
- Both, hot and cold wallets are linked with blockchain technology, and these wallets are designed with a special algorithm that can generate private and public keys to the users. Private keys can help you to encrypt your transactions and public keys will decrypt your transactions.
- When you use your bank wallet you can find a custodian authority and you have to link your bank account with your wallet. These banking wallets are designed by respective banks and here you need to go through a custodian authority like bank to make a transaction. But, in the case of hot and cold wallets of crypto currencies, you will get the complete control over your wallets and there will be no custodian authority.
- Cold wallets are based on paper or hardware, and you can take a print of your public and private keys on a paper to keep them in a safe place. On the other part, hardware-based wallets can be used as plug-in technology. You can plug-in this device to your computer to access your wallet. It can be hacked too because when you connect your computer with internet, hackers can get access to your wallets. In this case, you must use anti-virus software and malware protection software in your device.
- Your cold wallet contains a QR code which you will share to someone from who you will receives money or crypto. They can scan your QR with their wallet and transfer bitcoin or other crypto currencies to your account.
So now, you can search such wallets online and choose the best one to keep your crypto safe. Make sure, you must check their security features, encryption and reviews before you choose.