Crypto Wallet! Which one is suitable for your use?

Crypto Wallet

A crypto wallet is an application where you store your crypto and is a wallet that stores the passkeys you use to sign your cryptocurrency transactions and provides the interface that allows you to access your crypto. Cryptocurrency wallets make blockchain accessible to everyone. There are different types of wallets, each with its own features and level of security The biggest thing is that we know the crypto market is volatile. But no matter how stable this market is, you need a good quality wallet to keep your crypto safe. A wallet is a safe place where your crypto cannot be stolen or hacked. But there are many types of wallets in the market. From there you have to choose which one is best for you where your money will be safe and secure. Honestly there are many users who are brand new and confused about what is suitable for them. There are generally two types of wallets available in the market. Among them -

• Custodial Wallet and
• Non-Custodial Wallet.

There are also two subcategories of wallets. Eg:-

• Hot wallet and
• cold wallet

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Hot Wallet

A hot wallet is a type of wallet that is connected to the internet. Since it is connected to the Internet, some risks remain in it. But the advantage of this type of wallet is that Hot Wallet is user friendly and easy to use. We commonly see different types of hot wallets on the internet including desktop wallets, mobile wallets and web wallets. But the difference is that desktop wallets and mobile wallets offer almost the same benefits. The only difference is that the wallet is the same for desktop and mobile. Since it is connected to the Internet, it has some security flaws. Because nothing connected to the internet is completely secure as they can be hacked or stolen for any reason or at any moment. However, it requires software to install such wallets. Electrum and Bitcoin Core are some popular desktop wallets.

We often see that some wallets can be installed on various web browsers such as Google Chrome or Firefox etc. And such wallets are web wallets. Such wallets are easily accessible. Many of us are familiar with wallets such as Meta Mask, Petra, Coinbase etc. as these wallets are user friendly and free to use. These are all web wallets. And this is why they are so popular that you can use them freely and freely. And to use such hot wallets, you definitely need an internet connection.

Cold Wallet

Cold wallets are a type of wallet that you don't need internet to use that works offline. It is considered as the most secure wallet as it is not connected to the internet. There are different types of hardware wallets which are also called cold wallets because they use physical media for storage of your assets and such wallets are not internet dependent. But here is an important one as it is not connected to internet and it is offline based so cold wallet is expensive.

But we have to keep in mind that it is impossible for us who invest very little amount to use such expensive wallets. This may require you to spend a lot of dollars. Being a small investor it is difficult to buy a cold wallet. But those who want to keep the wealth for a long time can use this type. But if you invest $100 then using such a wallet there is nothing but luxury. Because it may require you to buy such wallet with the same amount of money as your investment or more.

Conclusion

In simple words cold wallet and hot wallet one is expensive and other is very affordable which can be used for free. Again cold wallet is expensive but it is quite safe as it is offline based. This type of wallet is best especially if you want to keep your assets for a long time. But if your investment amount is very small then hot wallet can be your option. Although it is internet based but it is user friendly and offers free. So hot wallet might be best for people like me who invest less. In that case, you must be safe or cautious in using such wallets. But it is up to you to decide which type of politate is best for you because you must use it according to your decision.