A crypto wallet is an online or offline site for the storage of cryptocurrencies. Just like your typical wallet, it is a place where you keep your cryptocurrencies of different types. It is from your crypto wallet that you send and receive cryptocurrencies. Every crypto wallet is identified by a unique wallet address. It is with this address that users can send and receive crypto. Let’s take a look at some types of wallets.
This is also referred to as cold storage. This wallet functions only offline. It saves the digital wallet on a platform that is not connected to the web. This way it is easy to prevent unauthorized access and hacking of any kind.
This is the opposite of cold wallets. They are connected to the internet and function online. This makes it very easy to set up and access. Also, hot wallets allow for more tokens. The bad thing, however, is that they can easily be hacked.
The paper wallet is an archaic method of storing Bitcoin which came into existence about a decade ago. It uses a crypto address and a private key created by a website and printed on paper.
A hosted wallet has a similar user interface with a mobile banking app. It stores private keys; thereby making it easy to retrieve the wallet if access is lost.
Hot storage refers to info that has to be used immediately. If the use of any data is critical or urgent, then such data is best suited for hot storage in order to gain swift access to it.