Steemit Crypto Academy week 2 | Homework task for @gbenga | Cryptoexchange or wallet.

Today i am writing about homework task set out by @gbenga , which is about , choosing to keep assets in either of wallet or cryptoexchange. Let's straight away go to task.

As for my limited experience on steemit is concerned, i would say, i would prefer to store my assets in a wallet . To be more specific, i would say, in a cold wallet. And to be even more specific, i would say, paper wallet. So i would like to mention little bit about crypto wallets.

As cryptos are digital assets, so the wallet used to store these assets are digital wallets. Wallets can be hot or cold.

These are web based wallets on our gadgetes like phone, computer erc. These wallets have higher potential of being hacked as they are internet based. Even if funds are stored on hot wallet, their quantity should be too low. Bulk of your funds must be stored on cold wallets. As we know that, while making transections on hot wallets , private keys are needed. After signing, the transactions are broadcasted online , that gives a chance to attackers to become privy to private key and grab the funds. Not only hacking but they are also accessible for regulations and other technical glitches as well. However, it is a fact that theee wallets are easy to set up, access, use, free of cost and accept wide range of tokens.

These wallets are not connected to internet. They are also known as offline or hardware wallets. Hardware wallet can be exemplified by a USB device on which keys are stored. As they are not connected to internet, therefore they are immune to web based attacks. The most secure type of cold wallet to store cryptos is PAPER wallet. Here public and private keys are printed or written on a piece of paper which is stored offline , may be with your documents. other examples are TREZOR and KeepKey.

Offline software wallets is another option available. These wallets demand a bit more technicality than hot wallets and other cold wallet options available. Offline software wallet has 2 accessible platforms, one of which is online which holds public key and other is offline which holds private key. Here a transaction is a multistep process, transactions generated on online part of the wallet are unsigned because this part of wallet does not hold private keys. These unsigned transactions send adress to reciever/user and than the transection moves to offline part and gets signed there and than is sent to online part to be broadcasted. So in this way, private keys are not exposed online to the web.

There are many ways of storing crytpoassets, like cryptoexhange, hot and cold wallet , paper wallet, offline software wallet . Everyone has its own qualities because of which they are able to sustain in the cryptosphere. But the feature which is of utmost priority is security. Keep that in view, cold wallets are best to store assets.