TYPES OF CRYPTO WALLET :
In the world of Crypto, you get 2 types of wallets,
1. custodial wallets
2. non-custodial wallets
Custodial wallets: These are the types of wallets in which access to your entire cryptocurrency is with your wallet provider.
ex. Binance's normal wallet, coinbase wallet, free wallet, etc
Non-custodial wallet: These are the types of crypto wallets in which you have complete control over your wallet. That is, no one except you has access to it in the entire world. This is considered a secure wallet.
There are 2 types of this too:
a. hot wallet
b. cold wallet
hot wallet: These are those wallets which are connected to the internet. i.e. you have complete control over your wallet but the problem is that you need internet to access it.
ex. trust wallet, binance web3 wallet etc.
Cold wallet: This is the most secure wallet. i.e. you have all the control over it, meaning this wallet is completely offline, there is no problem of it getting hacked. ex. tensor wallet, paper wallet, brain, external hard drive etc.
Now if you know even a little about crypto, there is one thing in the world of crypto (private key). The job of a wallet is to keep this key safe, because if this key falls into someone else's hands then consider your crypto currency gone.
So in cold wallet this key is saved in a pen drive, written on a paper or you can even keep it by memory.
But in case of hot wallet this key is stored in some server in encrypted form, whenever you need to transfer a crypto from one place to another place you need the internet connection.
That's all !!! If there is any other problem then message me, if possible then I will reply as quickly as possible.
