Hello everyone! 👋
Recently, I posted a survey to ask if you would be interested in dedicating a post to wallets, and lately, I have responded to people who have had issues related to these topics and have also read comments from people who had doubts or simply didn't know how to use them or what to use.
This topic is key, as a wallet not only serves to store your cryptos but is also the bridge to operate securely in the blockchain ecosystem.
So if you are unsure what type of wallet to use, how to protect your assets, or just want to improve your security, this post is for you.
Once this is said... Let's get to it! 😁
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Types of wallets:
1. Hot wallets. 🔥
They are wallets connected to the internet, installed via app on phone or using browser extensions.
What are its advantages?
They are quick and easy to use.
Ideal for daily operations or trading.
What disadvantages does it have?
Being connected to the internet makes them more vulnerable to attacks and malware.
In case of loss or theft of the device, there is a risk of losing access.
Examples:
MetaMask: It is ideal for interacting with DApps and DeFi protocols from a browser.
Binance Wallet: Works as an extension and is linked to your Binance account.
When can I use a hot wallet?
If you operate frequently, it can be useful.
Operate with small amounts.
Interaction with DeFi, creation or operation of NFTs, Web3 games.
Cybersecurity tip:
Never store your seed phrase in mobile notes or in the cloud; write your seed phrase on paper, notebook, etc., and enable verification.
2. Cold wallets. 🥶
There are several options, but they all have something in common; they are physical devices that you can operate within a computer or mobile without internet connectivity, and do not require the use of browser extensions, etc. Let's see what types of cold wallets there are.
Hardware wallets (the most used)
They are physical devices that securely store your private keys.
The device is only used to sign the execution order of the transaction, either on the computer or the mobile, thus avoiding exposing the keys to the internet.
What advantages does it have?
It is one of the safest methods.
They are very easy to use thanks to interfaces like Ledger Live or Trezor Suite, among others.
Examples:
Ledger Nano S Plus / Nano X (my favorites).
Trezor One / Trezor Model T.
Paper wallets
It is the most basic, basically consisting of having the private key / seed phrase written / printed on a piece of paper.
Advantages:
It is totally offline.
Free.
Disadvantages:
If it gets wet, breaks, etc., goodbye to your funds (if you haven't written down the phrases or keys as a security measure elsewhere).
If you are a careless or inexperienced person, I do not recommend it.
Air-gapped Devices
If you've read a book about cryptos, you've surely seen it. It consists of generating a QR code, and you only have access to the wallet with that code. It also allows you to generate QR codes to receive cryptos or for someone to send you a transaction.
Examples:
Keystone Pro
SafePal S1
Advantages:
100% network isolation = maximum security.
Recommendation:
When buying a wallet, it is important to buy from official pages, avoid buying on Amazon, etc.
In case you receive the package of the device opened or suspect that it may have been tampered with, automatically execute the return.
If using seed phrase generations, etc. (which I do not recommend), make sure they are reliable pages.
Do not use your wallets on unknown devices.
3. Common mistakes to avoid.
Do not store your seed phrases in notes, photos, in the cloud.
Always verify that the website is official, check before creating a wallet.
Before executing a transaction, you must check that the addresses are correct and if a MOMO code is required, use the indicated one; if you don't do this, there is a risk of losing the assets and not reaching the recipient.
Key tips to better protect your assets.
Treat your seed phrase as if it were the password to your safe. If someone steals it or has knowledge of it, you can lose your funds.
Keep copies in different places that only you know.
Do not compromise your security for economic reasons. Cold wallets are not cheap, but the more security you have, the more barriers against hackers you will have.
If doubts arise, do not proceed with the operation, inform yourself and then execute.
I hope this post has been helpful! 😉
Save this post, share it so everyone can have knowledge about wallets, and above all, if you have any questions, leave them in the comments. 🚀