I believe everyone is worried that the assets they have worked hard to earn in the cryptocurrency circle will be stolen by hackers due to their own carelessness. I am sure everyone has seen someone lose all their assets in an airdrop.
At this time, you will hear the word "wallet", and you will start to wonder what this wallet is. Next, I will tell you about it. It is all useful information. Take notes.
Cold wallet
A cold wallet usually refers to a location where your private key is stored and cannot be accessed by the network. It is a non-networked wallet, also known as an offline wallet. A cold wallet relies on "cold" devices to ensure the security of digital currency private keys. In the case of no network connection, it is stored through computers, mobile phones, and small notebooks with private key addresses. When users use cold wallets, since the outside world generally cannot access the location where the private key is stored through the network, the risk of hackers stealing the private key is avoided, thereby improving the security of digital assets.
However, cold wallets also have certain defects, namely, the operation process is relatively complicated. Once the wallet is damaged or lost due to natural disasters or man-made disasters and cannot be used, you may lose your invested digital assets forever.
Hot Wallet
Compared with cold wallets, hot wallets are just the opposite. They refer to wallets that can access your private keys through the Internet. They are wallets that stay online, also called online wallets. When using hot wallets, it is best to set multiple complex passwords on different platforms and enable secondary authentication to ensure the safety of your assets.
Wallet Address
Both cold wallets and hot wallets use wallet addresses to trade digital assets. How to understand wallet addresses? We can imagine it as you go to a bank to open an account, the bank gives you a card number, and others can transfer money to you through this card number. Generally speaking, wallet addresses and private keys appear in pairs. The wallet address is your bank card number, and the corresponding private key is like the password of your bank card number. The wallet address records how many coins you have stored in the wallet address. You are only eligible to use the money on the bank card number if you know the password.
Key
Private keys, like wallet addresses, are key elements in digital asset transactions. Whether you use a cold wallet or a hot wallet to store digital assets, anyone who knows your wallet private key can transfer and dispose of your digital assets at will. In short, whoever holds the private key is the real owner of the encrypted digital wallet. Therefore, please be sure to keep them safe when using your wallet.
After understanding this, you will know that most of the stolen funds are from wallets. The probability of exchanges being stolen is relatively low, except for small exchanges. The probability of small exchanges running away with money is still very high.
Then, it’s time to take advantage of the airdrop. Regardless of whether you are sure that it is real and safe, you must transfer your assets to a safe place, which will avoid the risk of most of your assets being stolen.
Of course, if you want to transfer money to another address and you always transfer it all at once without trying to confirm it, then you can say that you deserve it if your assets are lost due to your own mistakes one day.
I have finished typing and saying. If you are useful, please follow me. I only trade spot and do not go to small exchanges. I will share my bull market strategy layout for free. Let’s communicate and discuss together. See the pinned view. If you don’t understand, please leave a comment.
