1๏ธโฃ What is a Crypto Wallet?
A crypto wallet is like a digital safe ๐ where you keep your cryptocurrencies. Instead of holding physical money, it stores your private keys ๐, which are needed to access and spend your funds.
2๏ธโฃ Types of Wallets:
1. Hot Wallets ๐ฅ:
Connected to the internet ๐.
Examples: Mobile wallets ๐ฑ, web wallets ๐.
Convenient but less secure for large amounts.
2. Cold Wallets โ๏ธ:
Offline wallets not connected to the internet.
Examples: Hardware wallets ๐ฅ๏ธ, paper wallets ๐.
Ideal for long-term storage and larger funds.
3๏ธโฃ Hot Wallet Pros and Cons
โ Easy access.
โ Higher hacking risks.
4๏ธโฃ Cold Wallet Pros and Cons
โ Maximum security.
โ Less convenient for daily use.
5๏ธโฃ Custodial vs. Non-Custodial Wallets:
Custodial ๐ฆ: Third-party (e.g., exchanges) holds your keys.
Non-Custodial ๐: You hold your private keys.
Pro Tip ๐ง
Not your keys, not your coins! Always choose secure storage for significant holdings.