The journey to find the digital wallet!
The first thing I did was start the research.
As soon as I sat in front of the laptop in the morning, my mind was filled with questions about crypto. I wanted to start investing in it, but I had one problem: "How will I store these currencies?"
I decided to look for the answer to this question and started searching on the internet. I found articles about types of digital wallets, and each article told me that there are two main types:
"Hot wallet" and "cold wallet." I said to myself: "So what's the difference?"
The hot wallet - convenient but not always secure....
As soon as I found the definition of a hot wallet, I felt like I entered a new world. This wallet is a digital wallet connected to the internet, like connecting your bank account online. Everyone uses it for trading currencies because it is fast and direct.
I: "Well, if it's connected to the internet all the time, isn't there any security?"
Someone online told me: "Yes, there is security, but like anything connected to the internet, it can face attacks from hackers."
And I am not convinced, I said: "It could be useful for quick transactions, but not for storing currency for a long time."
Cold wallet - secure but not practical
After a while, I discovered the cold wallet. "This is never connected to the internet!" It’s like keeping the currencies on a small device, like a USB flash drive.
This wallet maintains a very high level of security because it has no internet connection, which means there are no attacks that could happen.
But the young man who explained it to me said: "But if you want to use your money quickly, this isn't practical, because it requires manual transfer of currencies."
I: "So this is better for someone who wants to store their currencies for a long time and keep them away from risks?"
The young man: "Exactly!"
And of course, the important question is security!
I am still confused until I found an article about security in digital wallets.
They said that security is not only in the type of wallet but also in the secret keys and also two-factor authentication (2FA). So if someone knows my password, they won't be able to access it unless they have the code that comes to your mobile.
I decided to do deeper research. "So if I lost the secret keys, that’s it?"
The answer: "Yes, no one can get your money back."
Just like if you lost your regular keys, you won't be able to open your safe.
I had a question: where should I put my money?
In the end, I decided that the right wallet for me would be the hot wallet if I trade daily, but I will keep the larger currencies in the cold wallet because I won’t need them continuously.
A question for the followers:
If you were to choose a wallet to store your digital currencies, what would you choose?
1- Hot wallet - fast and easy?
2- Cold wallet - high security but not practical?
Write your answers in the comments.
