What is a cryptocurrency wallet?
Crypto wallets help protect your private keys from dangers and risks on the internet, similar to how traditional wallets in the real world protect against loss or theft. Crypto wallets allow you to store, send, receive, or spend your crypto assets. There are two main types of crypto wallets: "hot wallets" and "cold wallets."
Hot and Cold Wallets
When acquiring cryptocurrencies from the internet, whether you buy them or receive them for free, the most common way is through an online exchange. Cryptocurrencies are stored in the online exchange's "hot wallet." A hot wallet is a type of cryptocurrency wallet that stores a public and private key, allowing you to view the various cryptocurrencies that the exchange supports.
However, when you buy or sell crypto on an exchange, it will be reflected in your wallet balance, but this doesn't just mean you're sending or receiving crypto to someone. When you send or receive crypto outside of an exchange, you need to sign a transaction with your private key and send it to the blockchain network. When the network validates this transaction, both parties' wallet balances are updated.
On the other hand, you can also purchase a "cold wallet" that allows you to store your crypto assets safely offline. You can transfer your crypto assets from an online exchange to a cold wallet (hardware wallet), where they are protected from malicious attacks on the Internet and only you know the private key.
Which Wallet is Best?
The main difference between hot and cold wallets is that hot wallets are always connected to the internet, while cold wallets are always offline and therefore not easily accessible.
Hot wallets are very useful as online tools, and are most commonly used through cryptocurrency exchanges or extension plugins. They allow you to easily check your balance and send and receive cryptocurrency, but because they are always online, they come with security risks. There is also a risk of hacker attacks, and your cryptocurrency may be stolen.
Cold wallets, especially hardware wallets, are considered one of the most secure ways to store crypto assets. This is because the private keys are stored offline, making them difficult for hackers to access. They usually look like a USB drive and are plugged into a computer or mobile device. Unless someone has physical access to the wallet, it is nearly impossible to steal your crypto assets.
Therefore, crypto assets stored in cold wallets are extremely safe. For example, hardware wallets like SecuX offer a high level of security and peace of mind for those who want to store their digital assets safely.
Best Crypto Wallets for 2024
A cryptocurrency wallet is essential for buying, trading, and selling cryptocurrencies. While you can easily get your hands on cryptocurrencies using a hot wallet from an online exchange, we strongly recommend that you then move your assets from the hot wallet to a cold wallet, which will keep your cryptocurrencies safe and secure.
SecuX offers hardware wallets to meet a variety of needs and supports the safe storage of crypto assets. For those who want to hold crypto assets for the long term, using a hardware wallet like SecuX is a very effective security measure. And xWIN Akihabara is an authorized dealer where you can get SecuX .