Cryptocurrencies are not physical coins, but records in the blockchain. To manage them, you need a crypto wallet. The main thing it does is store your private keys, which are like "passwords" that prove you own certain crypto assets.
Types of wallets:
Hot wallet
These wallets are constantly connected to the internet.
They are convenient and fast to use, perfect for everyday operations, trading, DeFi, and NFTs.
Examples:
-Mobile apps (Trust Wallet, MetaMask)
-Browser extensions
-Cryptocurrency exchanges (but this is the least reliable method)
Pros:
-Quick access to assets
-Convenient for frequent transactions
-Easily customizable
Cons:
-Vulnerable to phishing, hacking, and viruses
-Dependent on device security
Cold wallet
These wallets are not connected to the internet. They are significantly more secure and ideal for long-term storage of large amounts.
Examples:
-Hardware wallets (Ledger, Trezor)
-Paper wallets (printout of keys or QR codes)
-Offline computers with wallets
Pros:
-Maximum protection against hacks
-Suitable for storage for months or years
Cons:
-Less convenient to use
-Requires more careful handling: loss of device = loss of funds (if no backup)
The golden rule:
Use a hot wallet for active work, and a cold wallet for storage.
Keep only the amount in your hot wallet that you are ready to "take a walk in the city" with. The rest should be at home in a safe.
