Crypto Wallets | Hardware Vs Software , Which one is Best To Store Assets ?
The best and secure way to store crypto assets is to keep them in a hardware wallet but there are very less people who use hardware wallets as they are expensive. Due to this most of the crypto users use software wallets to store crypto as they are free to use. Software wallets are also called hot wallets.
In the world of crypto, a wallet is as important as a regular wallet for holding the cash. But it is not a leather wallet for the paper money, it's a place to store digital money. The digital wallet is like a tool which helps you to manage your digital money.
Safety of using your digital coins depends on the type of the wallet you choose. It is the act of balance between convenience and security considering different factors.
Indeed there are two big types of crypto wallets, hardware and software, each with its own approach. This article i am writing is covers what software and hardware wallets are. Here providing some examples, and highlighting the key differences, including the important factors to consider.
A hardware crypto wallet which is also known as a cold wallet is like a physical device (similar to a USB drive) which keeps private keys safe and secure. These keys are required to use and manage your digital funds. By storing digital assets offline, these wallets protect them from the hackers, but it's crucial to keep hardware wallet in a secure place to prevent the physical damage.
The Popular hardware wallets can work together with software wallets. For example, the Exodus wallet can connect with the Trezor cold wallet. Crypto.com's desktop app can integrate with Ledger hardware wallets.
Now, a software crypto wallet, or hot wallet, is a program you use on your computer, phone, or other digital devices. Depending on where you use them, they're called desktop, mobile, or web wallets. The main difference between them is how they handle and secure your cryptographic keys.
There is another way to categorize software wallets, such as custodial and noncustodial wallets . Custodial wallets have third party which manage your cryptocurrency while non-custodial wallets give you full control. However, if you forget your keys or passwords in the noncustodial wallet then you lose access to your digital assets.
Common popular hardware wallets used these days are ledger and trezor. These comes at a cost that is why are used less. On the other hand , common and best ranked software wallets are metamask and trust wallet. These are usually free to use which is why are very popular and used at a big scale.
Personally i used trust wallet from the beginning as it is very simple to use due to its interface. I do agree that metamask is the most popular hot wallet in crypto but i feel that it can be more improved especially the interface.
Recently i have come across okx wallet extension, i am using it these days as it keeps full track of your assets including the ones you have put into liquidity pool in any project.
Those users who have put their money into the multiple projects they can keep track of their funds through the okx wallet extension. Due to this property okx is taking the lead and is getting popular.
Well, it is always good to have a good research before using any wallet as there are many fake copies out there which can drain your wallet. Make sure you use official legit links to get access to these wallets.
Thats it for today. Thanks for reading. What do you think about my today's topic? Let me know your thoughts in comment section. In the end i would like to Wish you and your family a happy day ahead. Stay Blessed.
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About Author
@coolguy222 is a crypto trader and content creator on hive blockchain. He also runs a small business of Mobile accessories and Wrist watches. He loves to make new friends.
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It is all relative. One of the best wallets is SAFEPAL S1, which is at the same time one of the cheapest, or perhaps the very cheapest of all them, only $50
Is $50 expensive ?
YES - if all your crypto portfolio is only worth $200 or $300.
NO, not at all - if your crypto wealth is $10000, or perhaps $30000. Or more.
But keep in mind, if you intend to HODL your crypto for 5-10 years, your portfolios can make 10x growth. Maybe even 20X growth or more.
And your $200 becomes $5000.
And 1% of that ($50) is still TOO EXPENSIVE ???
iT'S ALL SO RELATIVE...
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