Good day to all my lovely kids. How are we today? I know we have enjoyed the weekend. It is another beautiful week ahead for us all. I am very grateful to the steemkids who participated in last week crypto academy.

One of the characteristics of blockchain is that it has a storage facility where the assets or crypto currencies are stored or kept. Every owner of a crypto currency must own one or multiples of it. What I am talking about? WALLET.
Today we are going to discuss about wallet.

What is a cryptocurrency wallet?

A cryptocurrency wallet can be defined as any physical medium, device or computer program that is used to store the keys for a cryptocurrency transaction. It allows users of cryptocurrencies to store and be able to retrieve their digital assets. It assist owners of cryptocurrencies to keep the investments in one particular place.
In steemit, every user have a wallet, that is where all the steem, Steem dollar we earn are stored. Even the tron we earn are also stored in a wallet.
When we sign up in steemit, these wallets are automatically generated, and you are provided with the keys to access them. With these keys, you can be able to withdraw or transfer cryptocurrencies from your wallet.

This can be illustrated with the normal physical wallet, where we keep our paper money. When we want to buy some things, we take money from the physical wallet and pay for the things we bought.
The crypto wallet just performs the same function as the physical wallet.
A cryptocurrency wallet makes it easier for users to store, manage and do transactions with their crypto assets.
It helps crypto users to manage their crypto balances

TYPES OF CRYPTOCURRENCY WALLETS

Cryptocurrency wallet can be classified based on the way they are used and its form.

Classification based on mode of storage

In this category, we have two types

● Hot wallet

This type of wallet works with internet connections, thus making them more unsecure. They are more easier to use, more user-friendly, more prone to security and cyber attacks.

● Cold wallet

These are the type of wallets that do not require a network connection to store cryptocurrencies. It stores them in an offline mode. It happens to be better in terms of security and safe keep since it is more protected from fraudsters and cyber attacks. However it is less user-friendly compared to the hot wallet. It may be stored in a detachable drive or computer hardware, which can only be accessed when you want to make use of it.

Types of Wallet

The other type of wallet which may also be part of the first classification

Software Wallet

Just as the name implies, these are the type of wallet that are being used by most people today. It may be an app or run on a browser. Even the steem wallet we use is a software wallet. Most of them use internet connections and provides an easy way of carrying them around as well making payments and transactions less difficult.

Some of the wallets in this category are:-

■ Online or Web wallet

This is the type of wallet that users can get access to through a web browser. They are very fast when it comes to transaction execution and can enable users manage an appreciable quantity of cryptocurrency. However, it is not secure, since it can be threatened cyber thefts and hackers.

■ Mobile wallet

These are the type of wallets that we can download and install them in our mobile devices. It provides easy accessibility to our wallets, since we can carry out wallet around with us in our mobile phones. We can easily pay and conduct transactions with this kind of wallet. However, since it makes use of the internet, it is subject to the activities of fraudsters and hackers if not proper taken care of.

■ Desktop Wallets

This is a type of wallet in which cryptocurrencies are stored in a computer or it may be a detachable drive(flashdrive). This type of wallet is more secure than the two previously mentioned because its storage is done offline. Cyber fraud and hackers cannot get access to it. In this case, you generate a password, which you use to access it anytime you run the software in your computer.

Hardware wallets

This is the type of hardware that stores its users keys in a very secure hardware and cannot be moved or transferred to other devices. It does not require internet connection to work, thus making it a secure form of storage. However, it stands the chance of being corrupted if the firmware is not properly done, that means that the storage can be attacked by computer virus. Hardware wallets are not user-friendly compared to the software type. Accessibility to your crypto assets is more difficult.

Paper Wallet

A paper is a wallet that the crypto address is written on a piece of paper while the keys are physically printed out as QR codes. Any time transaction is to be done, thw QR codes will be scanned to authorize execution of the transaction. The keys of a paper wallet are generally stored offline and it is barred from fraudster or cyber attacks.

Conclusion

Today we have learnt what a cryptocurrency wallet is and why it is important for each of us to have at least one. Today's lesson have explained the different types and categories of cryptocurrency wallet, their benefits and their problems too.

Assignment

● 1. What is a cryptocurrency wallet?

● 2. What are the benefits of a crypto currency wallet.

● 3. Mention the types crypto wallets.

● 4 Explain the classification by mode of storage

Homework Rules

Must be a verified steemkid

Assignment should done using your steemkids verified account

Ensure there is no plagiarism.

The post must be in steemkids community.

Kindly tag me in your post

resteem and drop your link as a comment for the post.

use the following tags as the first four tags:

#steemkidscryptoacademy4 #steemexclusive #yourcountry(eg - #venezuela) #steemkids

The number of words should not be less than 200 words.

Entry will be closed at Saturday 7th October, at 11.59pm GMT.

Reward Pool

30 Liquid steem to be shared among the participants.

The bests posts stands the chance of being selected for quality posts of the day.

Looking forward to having a great time with you all in steemkids crypto academy