Crypto Wallet is a digital wallet application (device) helpful in storing, managing, and making transactions with crypto assets.
Crypto Wallet allows easy and secure storage and access of crypto assets and transactions using only a mobile device or computer.
Crypto Wallet Advantages
Here are some examples of the advantages of using a Crypto Wallet:
1. Ease and Speed of Transactions
Crypto Wallet allows for quick and easy transactions without holding cash or issuing a physical card.
2. High Security
Crypto Wallet uses advanced encryption and security technology to protect crypto assets from criminal acts such as hacking and theft.
3. Anonymity
Some Crypto Wallets allow anonymity, so you can transact without revealing personal information.
4. Accessibility
Crypto Wallet can be accessed and used from anywhere and anytime as long as there is an internet connection.
5. Transaction Recording
Crypto Wallet keeps transaction records that allow them to be viewed at any time, making it easy to track expenses and income.
Custodial and Non-Custodial Wallet
The following is the meaning of custodial and non-custodial wallets:
Custodial Wallet
A custodial wallet is a crypto wallet with private keys managed and stored by a company or service provider (third party), such as a crypto exchange.
Service providers are responsible for the security and storage of crypto assets owned by users.
Users of custodial wallets do not have full control over their crypto assets and do not have direct access to their private keys.
Non-custodial Wallet
A non-custodial wallet is a crypto wallet that allows users to have their private key and full access to their crypto assets.
Non-custodial wallet users are responsible for securing and storing their crypto assets.
Types of Crypto Wallets
There are several types of Crypto Wallet available, including:
1. Cold Wallet
A cold wallet is one of the choices that is considered the safest for storing crypto assets because it is not connected to the internet. Therefore the risk of hacker or malware attacks is very low.
However, the user has to store the private key manually, such as writing it down on paper or storing it in a hardware wallet that is not connected to the internet.
In addition, users also have to process transactions manually, such as importing private keys to devices connected to the internet.
2. Warm Wallet
A warm wallet is an easier option because it is connected to the internet, and users can easily make transactions and access balances.
However, the risk of hacker or malware attacks is higher because it is connected to the internet.
The user must keep the device safe by installing anti-virus software or enabling two-factor authentication.
3. Hot Wallets
A hot wallet (hot storage) is connected to the internet and allows real-time transactions.
Hot wallets are used by users who frequently make transactions and are usually used as temporary wallets.
However, hot wallets are connected to the internet. Therefore, hot wallets are also more vulnerable to hacker attacks than cold wallets (not connected to the internet).
How to make Crypto Wallet
1. Choose a Crypto Wallet
Choose the type of crypto wallet that suits your needs and level of security.
2. Install the Crypto Wallet Application
Apart from installing the application, you can also open your chosen crypto wallet website.
Then create an account by filling in the required information, such as an email address and password, then make sure you store this information safely.
3. Account Verification
Verify your account by following the crypto wallet application or website instructions.
4. Adding Crypto Assets
Add your crypto assets to your crypto wallet by sending crypto assets from other wallets to your wallet.
5. Store the private key safely
Private keys are used to access your wallet and make transactions. Some wallets that provide physical private keys must be stored properly.
Examples of Crypto Wallets
Here are some examples of popular and frequently used crypto wallets:
1. Metamask
MetaMask is a crypto wallet that stores and manages crypto powered by the Ethereum Blockchain.
MetaMask is a browser application that can be installed on browsers such as Google Chrome, Brave, Firefox, and others.
2. Ledger Live
Ledger Live was developed by the Ledger company, which provides features to store, manage, and make transactions with crypto assets such as Bitcoin and Ethereum.
3. Trust Wallet
A trust wallet is a crypto wallet used to store, manage and make transactions with various crypto assets. It provides features such as payment by QR code and support for DApp (Decentralized Application).
Conclusion:
1. Crypto Wallet is a valuable digital wallet application for storing, managing, and transacting crypto assets.
2. Custodial wallets have private keys managed and stored by a company or third party. In contrast, non-custodial wallets allow users full access to their crypto assets.
3. Several types of crypto wallets are available: Cold Wallets, Warm wallets, and Hot wallets.
In the following material, you will study and discuss basic learning material regarding other crypto assets, namely “Crypto Analysis.”