Thanks to the bitcoin halving, the growing popularity of meme coins, and the TON network taking the world by storm, the word on everyone’s lips is “cryptocurrency airdrops.” It’s all many people talk about lately, so more people are flocking into the crypto space.
This widespread adoption is good news for us because we welcome everyone — the more, the merrier.
Now that you’re here, you need to understand the basics. So sit tight while we take you on a brief crash course on crypto wallets, the different types, and how to store your new tokens safely. Don’t worry if you’re new to this — we’ve made it easy to follow. And for the experts in the house, just think of this as a refresher course.
Understanding Crypto Wallets
Think of your crypto wallets as a digital bank specifically for your crypto assets, which you use to interact with the blockchain network. With your crypto wallet, you can send, receive, and store digital assets such as Bitcoin, Ethereum, Dogecoin, Pepe, and more.
Crypto wallets come in different forms, with the two main types listed as Hot and Cold Wallets. These two are categorized based on their method and storage location. Internet connectivity plays a significant role in classifying a wallet as hot or cold.
Hot Wallets
These wallets require the internet to work, and you can easily access them on your laptops and phones for trading. We can further classify these into:
- Mobile Wallets: They are convenient for everyday use but require internet access. You can use them on the go and wherever you are. Examples include the Roqqu app and Trust Wallet.
- Desktop Wallets: These are software installed on your computer, such as Exodus or Electrum. They allow you to store your private keys on a computer hard drive. While desktop wallets offer more features, they are more vulnerable to malware.
- Web Wallets: These are online crypto services accessed through an internet browser. They are usually easy to use but more susceptible to hacking and DDOS attacks.
Cold Wallets
As the name suggests, cold wallets are entirely offline. They are more secure than hot wallets because the private keys are stored on external devices, free from online hacks or theft. We can further classify them into:
- Hardware Wallets: These are hardware devices that store your private keys offline. You’d need to connect it to a computer to access the private keys.
- Paper Wallets: These are physical printouts or writings of your private and public keys. They are very secure if appropriately stored but can be easily lost or damaged, which could lead to irrecoverable funds.
Custodial and Non-Custodial Wallets
Other wallet forms are the custodial and non-custodial types. For Custodial Wallets, a third-party platform like Roqqu controls the private keys. They are also called hosted wallets and are popular among crypto newbies and experienced day traders because they’re easy to set up and user-friendly.
Custodial wallets are great because they save you the stress of storing private keys and forgetting seed phrases and promote convenience and easy usage. So, even if you forget your password, your coins are still safe if you do what is necessary.
Non-custodial wallets give you complete control over your private keys and coins. You’re responsible for managing and securing your assets. They have higher privacy and anonymity levels, but your coins are lost forever if you lose your password and seed phrase.
Choosing the Right Wallet for You
You should consider the following factors when selecting a crypto wallet:
- Security: How secure is the wallet? Hardware wallets are generally the safest, but they have several drawbacks.
- Convenience: How easy is it to access and use the wallet?
- Frequency of Use: Do you need the wallet for daily transactions or long-term storage?
- Type of Cryptocurrency: Ensure the wallet supports the specific cryptocurrencies you plan to use.
Exchanges like Roqqu are the best bets if you’re looking for a secure and convenient wallet for daily trading or long-term storage.
Wrapping Up
Crypto wallets are crucial for anyone looking to invest in digital assets. Once you start buying, selling, or earning crypto, you need a convenient and secure wallet to store your coins.
Once you understand the different types of wallets and follow best security practices, you can confidently start your crypto journey. Remember, the right wallet will depend on your individual needs and preferences.
