We all know something about Bitcoin or cryptocurrency by now.If not, you are here because you want to know.Well, if that, then you have done it right. bitcoin reward is the first cryptocurrency incepted in 2009 by a man named Satoshi Nakamoto (it is a pseudonym; therefore, it can be a group of people as well).
Since then, many people have continuously assumed what the future of bitcoin will be.Well, most of them were wrong because of the volatile nature of the market.Not much happened until bitcoin reached its all-time highest value in 2021.
Having a wallet is a must if you need to trade in bitcoin.This is the address that lets you save the private keys.You will need the private keys for future reference when there is a need to sell bitcoins or make a transaction.Apart from that, it is the digital wallet, which is the digital form of the wallet.Just the way digital money is the digital form of fiat money.
Bitcoin wallets are of two types.
- Hot wallet
These are online wallets.The internet powers them.Also, they need the internet to transfer the cryptos.They are operated by software, and hence the name software wallet comes in.
There are three types of hot wallets, and these are enlisted below:
Desktop wallets are those that we store on our desktops or laptops.To access this wallet, you need to down the software on your desktop.In fact, each of the devices would require individual software installation.Do not think that you will install it on one device, and it will run on all of them at the same time.Having a safe and secured internet connection is a must here. Also, there are different versions of the software for different operating systems on your computer, such as Apple, Windows, etc.
Mobile wallets are software just like the desktop.Only after installing the mobile wallet app on your phone, you can you use the mobile wallet.
The Web wallet is very much like the exchange wallet.You have to create this wallet online and access it via different devices using a safe internet connection.You can always use it from your mobile, desktop, or laptop.
- Cold wallet
This is the other main type of crypto wallet.It is also famously known as the hardware wallet.This kind of wallet does not need any internet connection to work.In fact, the bitcoins are safe on an external hard drive.When you store your assets in this type of wallet, they remain more secure than in a hot wallet, as there is no way a scammer or hacker can build a connection with it.
Cold storage is mostly used for saving bitcoin assets.Never leave your bitcoins online or in hot storage.Move them into cold storage to keep them safe.As you will be the owner of the hard drive, you are in full control of your asset.
Make transactions using the hot wallet.
We already said that keeping your assets in cold storage is the safest option to choose.On the other hand, we also suggest that you have a little portion of your assets in the hot wallet to do the trading or other kinds of transactions.You may need it any time.Therefore, keeping it handy would be a very good idea.
All you need to do is store all your crypto assets in cold storage first.After that, a shift is needed in a hot wallet for immediate purpose. It will remove all the hot wallets.
Is it safe?
This is absolutely safe when you put on a small amount in the hot wallet.Unless you are not transacting what you have in your hardware storage, there is no risk associated with it.It is safe for you to follow.
These are the basics of both hot and cold storage.Using these both, protect and transact your crypto.And if your interest is in trading, you can register the Bitcoin Eraapp, or similar apps to simplify your trading process. A credible and authentic crypto trading platform will make it easier for you to trade.