What are digital wallets? And what is the difference between hot and cold?
Digital wallets are tools used to store and manage cryptocurrencies like BTC or ETH.
They contain private keys that allow you to access your funds on the blockchain.
Wallets are divided into two main types:
🔹 Hot Wallets:
– Connected to the internet
– Easy to use and fast
– Includes: app wallets, browsers, and trading platforms
– Suitable for daily transactions
– Less secure if not properly protected
🔹 Cold Wallets:
– Not connected to the internet
– Such as: hardware wallets (USB) or paper wallets
– High security against hacking
– Suitable for long-term storage
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✅ Summary:
📌 Use a hot wallet for flexibility, and a cold wallet for protecting large assets.
📌 In the next lesson: What is margin trading? And is it suitable for beginners?
