Author: Gerard Ferreira
Whey Yuh Keepin’ Yuh “Money”?
In our Crypto Crash Course we mentioned using an online exchange to get cryptocurrency, which goes into a digital wallet when received. There’s actually a…bit…more to wallets than 👛 that, so we have this handy article to help!
A crypto wallet is, simply, where you keep your cryptocurrency.
There are 2 major categories of wallets: Hot Wallets 🔥 and Cold Wallets 🧊.
Keepin’ it Hot
Not just your wallet on Friday after payday, Hot Wallets are regularly connected to the internet and are meant for everyday use. Due to being online, they are quick/easy to use but are at risk of being hacked and you getting your funds ‘tief’, so smaller amounts of crypto tend to be held in these.
There are three main types of Hot Wallets:
- Web/Online Wallets are online-only platforms which can be accessed from any internet-enabled device. ‘Coinbase’ and ‘Kraken’ are two of the most popular.
- Mobile Wallets, like ‘Coinomi’ which are downloaded to your phone. These apps allow you to access your funds on the go.
- Desktop Wallets such as ‘Exodus’ are downloaded to a specific computer and can only be accessed on that device. These give a bit more security, but can still be hacked if connected to the internet.
Chillin’ in de Cold
Cold wallets are physical devices that are not connected to the internet, so the only way to access them is to have physical control of the device. These wallets offer greater security and are usually used for larger amounts or entire portfolios that people want to keep secure for longer periods.
There are three main types of Cold Wallet:
- USB stick/Flash Drive, such as ‘Ledger’ that contains your private crypto keys (passcodes that enable access to your funds).
- Paper Wallet 📝, which is a print-out of your passkeys and a QR code, which when scanned gives access to your funds. Check out ‘Walletgenerator’ if you’re interested in this format.
- Desktop Wallets 🖥️ can also become Cold Wallets if the computer they are on is never connected to the internet (but who has a computer lying around for that?)
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