STEEMKIDS CRYPTOACADEMY WEEK4 | CRYPTO WALLET ASSIGNMENT | by @jabuking04

Hello members of steemkids, i am glad to participate in the cryptoacademy.

WHAT IS A CRYPTOCURRENCY WALLET?

First, I want to note that a cryptocurrency is a digital currency that is used to conduct transaction for goods and services. A cryptocurrency wallet is where you keep cryptocurrencies together. It is where you hold all your digital assets together. It is where you store your cryptocurrency safely. At anytime you want to perform any transaction with your cryptocurrency, you can always access it from your crypto wallet.

WHAT ARE THE BENEFITS OF A CRYPTOCURRENCY WALLET?

There are many benefits of cryptocurrency wallet:

• One major benefit is that it helps you to hold your digital currencies together in one place since one can have as many digital currencies as possible.
• Another benefit is that the wallet helps one to properly manage his cryptocurrencies efficiently.
• Without the wallet, one can find it difficult to store his digital assets safely.
• Another benefit is that cryptocurrency wallet helps one to access his currencies at anytime, which means that you are in full control of your digital assets.

MENTION THE TYPES OF CRYPTOCURRENCY WALLET?

We have different types of wallets:

• We have soft wallets. Soft wallets are the ones you really need Internet connection for you to access it. It could come in form of an application that you need to download or other forms.
• We have wallets that do not need Internet connection for you to access your wallet. For this type, you just need to connect the physical device to a computer.
• You can also decide to write down all the information on a piece of paper and keep the paper safe.

EXPLAIN THE CLASSIFICATION BY MODE OF STORAGE?

By mode of storage, one can classify the wallet into two namely: Hot wallet and Cold wallet.

Hot wallet as the name suggests means that its always available and accessible at anytime. For this type, you always need your Internet connection, anyone can find it easier to use. But one major disadvantage is that it can be easily hacked.

Cold Wallet: For this type, you do not need Internet connection to keep your cryptocurrency. One major advantage is that one cannot easily hack it. However, if you compare it to hot wallet, it is not so easy to be used like the hot wallet.

I am grateful @benton3