1️⃣ What is a Crypto Wallet?
A crypto wallet is like a digital safe 🔒 where you keep your cryptocurrencies. Instead of holding physical money, it stores your private keys 🔑, which are needed to access and spend your funds.
2️⃣ Types of Wallets:
1. Hot Wallets 🔥:
Connected to the internet 🌐.
Examples: Mobile wallets 📱, web wallets 🌍.
Convenient but less secure for large amounts.
2. Cold Wallets ❄️:
Offline wallets not connected to the internet.
Examples: Hardware wallets 🖥️, paper wallets 📝.
Ideal for long-term storage and larger funds.
3️⃣ Hot Wallet Pros and Cons
✅ Easy access.
❌ Higher hacking risks.
4️⃣ Cold Wallet Pros and Cons
✅ Maximum security.
❌ Less convenient for daily use.
5️⃣ Custodial vs. Non-Custodial Wallets:
Custodial 🏦: Third-party (e.g., exchanges) holds your keys.
Non-Custodial 🔑: You hold your private keys.
Pro Tip 🧠
Not your keys, not your coins! Always choose secure storage for significant holdings.