When it comes to the world of crypto, we are fairly vulnerable with our assets due to high amount of hacking and security issues. We’ve seen some high caliber hacks within the recent months and probably the ones that come to mind first are the Coincheck and Mt. Gox. Anytime you are holding your coins or tokens on any exchange, you are at risk to some sort of hack or cyber security breach. We must protect ourselves in such a cruel and unregulated industry. This is where a cryptocurrency wallet will come into play, and assure you that your coins and tokens are safe.
Now when it comes to wallets, you have a very wide range of options but some are a lot better then others. You really want to make sure you find the best one that fits for you and your portfolio as well. First off, you need to know the difference between a “hot” wallet and a “cold” wallet. A hot wallet would be similar to your checking accounts and cold wallet would be more like your savings.
Hot wallets would be any type of wallet that is holding your coins or tokens on an exchange or any software applications. A few examples of exchanges would be Binance, Coinbase, Bittrex, GDAX, etc. Other forms of hot wallets are considered software applications that can run on any smartphone, tablet, or PC. Some examples of these are Exodus, JAXX, MyEtherWallet, etc. Unfortunately, this type of wallet is a little more risky due to hacking and security issues. Below is a list of a few hot wallets that are popular amongst the community;
- Bitcoin Core
Cold wallets, are wallets that are not being held on any network and being kept offline, they would be considered hardware wallets. These hardware wallets are a physical device, kind of like a USB drive, that are kept completely offline but has the ability to be plugged into a computer when needed. Hardware wallets cannot be hacked into, so this makes it the safest way to hold your coins/tokens. Below are some examples of some cold wallets;
Not all wallets, hot or cold, will fit for your portfolio. You really have to do your research before so you can find out which wallet or wallets will hold your specific coins or tokens. if you are unclear to which wallet can be used for your coins, go to https://coinclarity.com/ and you can find out from there.