What Are Crypto Wallets? Hot vs. Cold Wallets Explained
What Are Crypto Wallets? Hot vs. Cold Wallets Explained If you're new to cryptocurrency, you might have heard the term crypto wallet and wondered what it means. Don't worry—it's not as complicated as it sounds! Think of a crypto wallet like your regular wallet, but instead of holding cash and cards, it holds digital money like Bitcoin, Ethereum, and other cryptocurrencies. Understanding Crypto Wallets A crypto wallet is a tool that allows you to store, send, and receive cryptocurrencies safely. Unlike a traditional wallet that holds physical money, a crypto wallet stores special codes (called private keys) that give you access to your digital assets on the blockchain. There are two main types of crypto wallets: Hot Wallets (Connected to the internet) Cold Wallets (Stored offline) Let’s break them down in simple terms. Hot Wallets: Easy to Use, But Less Secure A hot wallet is connected to the internet, making it super easy to use. It allows you to quickly access you...