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What are Wallets?

What are Wallets?
Difficulty
Intermediate
Duration
22m
Students
59
Ratings
5/5
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Description

This course delves into the subject of cryptocurrency wallets and covers what they are, how to choose the right one for you, and how to buy and sell cryptocurrency.

Transcript

If you're not aware of what cryptocurrency wallets are, the easiest way to look upon them is as bank accounts in the cryptocurrency ecosystem. But one which you have a lot more control over and isn't riddled with endless paperwork in regards to setting one up. If you've gone forth and ever searched for the term "cryptocurrency wallet", you're more than likely be have been inundated with options from which you can't distinguish what the best wallet to use is. This wallet is the best. This wallet is the newest. This is the safest wallet and so on. Having options is great. But, for those of you getting started in this ecosystem, it just adds to the confusion as if grasping the concept of cryptocurrencies wasn't difficult enough for the newbies of you. What I want to do in this lecture is clearly distinguish the two key different types of wallets with you. Hence, going forward, you will be able to understand which wallet is best suited for your needs. First: Hot wallets. These types of wallets are connected to the  Internet one way or another. In my experience with being involved in this ecosystem for many years now, hot wallets are generally easier to set up, more convenient to access, accept a larger variety of tokens. However, due to hot wallet's being connected to the  Internet, this makes them a more open target for hackers. There have been many cases where cryptocurrency hot wallets have been compromised. Examples of hot wallets include Coinbase, Exodus, Blockchain, and Jaxx. Second: Cold wallets. These types of wallets are not constantly connected to the  Internet in any way, shape, or form. In my opinion, cold wallets are far more secure than hot wallets. So, if you're storing large amounts of cryptocurrency, this will be my go to type of wallet. Remember this with cold wallets. They generally cost to purchase. As your coins are kept offline, it provides great security and it's not as convenient as a web wallet. Examples of cold wallets include Trezor, Ledger Nano S, and KeepKey. Remember, the most secure forms of cold wallets, such as those mentioned, come as physical devices. Hence, making them not as convenient as web wallets but far more secure. Personally, I wouldn't recommend anything other than a cold wallet for storing large amounts of cryptocurrencies that you may begin to acquire. Cryptocurrencies allow you to be your own bank. So, relevant security precautions need to be taken. See you in the next lecture where we'll dive deeper into which wallet to choose.

 

About the Author
Students
464
Courses
8
Learning Paths
1

Ravinder is an expert instructor in the field of cryptocurrencies and blockchain, having helped thousands of people learn about the subject. He's also the founder of B21 Block, an online cryptocurrency and blockchain school.