DIFFERENT TYPES OF WALLETS TO STORE YOUR CRYTO CURRENCY

 

TYPES OF WALLET USED IN STORING CRYPTO CURRENCY

There are to main categories of wallet.

HOT WALLET AND COLD WALLET

HOT WALLET: Hot wallet are wallet that resides on the internet or cloud, they are easily accessible with internet at all time, irrespective of your location on earth without any barrier.

COLD WALLET: These are wallet that does not reside on the internet, there accessibility is limited, because they are not readily available at all time.

 

HOT WALLET VS COLD WALLET

 

Both wallet have their advantage and disadvantage.

Hot wallet are easily attacked by hackers, while cold wallet are like the physical bank vault, since is not online, there are no way a hacker can have access to it. However, before you can make use of it, you must get to the location where it is, or move it around with you, which makes it not easily accessible.

CUSTODIAL WALLET AND NON-CUSTODIAL WALLET 

We have two types of wallet categorization, they are CUSTODIAL WALLET and NON-CUSTODIAL WALLET

CUSTODIAL WALLET: These are wallets that the SEED PHRASE(Usually 12 words that you are meant to write down somewhere and use to recover your password in case of any challenge) and the PRIVATE KEYS (Use to authorize Transactions) are managed by the platform where the wallet reside, and not by you. 

A typical example of a custodial wallet is Binance.

 

 

Binance is one of the biggest Centralize exchanger (Where you can buy and sale over 150 types of cypto currencies, and it will give you the opportunity to have wallet for each of the currency it trade in that platform) in the world today, and they run a HOT WALLET and also a CUSTODIAN WALLET.

It is a centralize exchange platform because it is being owned by a company and run by the company. This is why you need to do KYC (Know your customer) Verification before you are allowed on that platform.

I will give an article on Binance after this lecture. Stay tuned for it............

 

TYPES OF MOBILE WALLETS:

Mobile wallets are safe to store your crypto currency if you follow the necessary security precaution that I will discuss in this lecture.

We have three top mobile wallets that are completely free, they are as follows:

Exodus wallet

Trust Wallet 

Atomic wallet

Note: Before you store your crypto in any of this wallets, kindly do the following

1.     Reformat or reset your phone if it is android Phone

2.     Download and install good anti-malware to scan your phone if you do not want to reformat or reset the phone.

3.     Iphone is your best phone to use due to high security compatibility of the device, but if you do not have iphone, kindly do the two aforementioned instruction before you start to download any of the above stated wallets, to store your crypto in it.

Out of the three mentioned wallets, I will like to discuss each of them.

 

EXODUS WALLET: This is rated the best out of the three mentioned wallets, because it does not allow DIFI to run on it.

 

DIFI: This is decentralizing finance. All the financial programs obtainable in your traditional banking like Insurance, Loaning, Borrowing, Stacking etc, is also obtainable in Crypto currency, and it is called DIFI, meaning decentralized finance. Why it is called decentralized, is because nobody is in control of it. It is a SMART CONTRACT that runs on blockchain in autopilot.

If you want to know more about SMART CONTRACT, check my article on COIN VS CRYPTO with the link below https://ceo-entrepreneurship.blogspot.com/2021/09/coin-vs-token.html

TRUST WALLET: This is rated the second, however it allows DIFI to run on it.

 

ATOMIC WALLET: This is rated the third, and it also allow DIFI to run on it.

 

 

The three mentioned wallets are all HOT WALLETS because the reside online, however they are NON-CUSTODIAL WALLET as you are the custodian of  your SEED PHRASE and PRIVATE KEY.

There are so many other good wallets you can use to store crypto, but this article will not permit me to go into more details.

Note: Do not store your crypto in exchange platforms, it is very risky, take it to a private wallet where you have the private key and the seed phrase, it is very important.

 

I remain CEO BJ (An Entrepreneurship Development Expert) whatsapp @ 08034453005 or +234-803-445-3005

#ceo #ceoentrepreneurship #crypto #bitcoin #cryptocurrency #blockchain #money #trading #business #entrepreneur #investing #investment #invest #bitcoinmining #forextrader #investor #trader #success #binaryoptions #bitcoinnews #litecoin #stocks #bitcoins #eth #forextrading #wealth #cryptocurrencies #motivation #finance