Wallets
A wallet is a digital tool that is used to store, control, send or receive cryptoassets.
In more technical terms, a wallet is a piece of software or device that stores the private keys associated with one or more addresses in a blockchain.
There are different types of wallets. It is important to study the advantages and disadvantages of each one to determine which one best suits our needs.
Cold wallets are external physical devices, usually USB devices that are not permanently connected to the Internet (they must be connected to operate on a blockchain and therefore provide a higher level of security. As they are not permanently connected to the Internet, they are less exposed to cyberattacks. These wallets require certain knowledge and skills to be used effectively and securely.
On the other hand, hot wallets are software devices that can be installed on a computer, tablet, or smartphone. They are more agile for carrying out daily operations and are easy to use. Because they are installed on devices and are permanently connected to the internet, they are more susceptible to cyberattacks.
Hosted wallets. Many crypto asset users choose to open their accounts on exchange platforms. In these cases, control of the cryptoassets is held by the exchange platform, as it is this entity that holds the private keys to the wallets. This is known as a hosted wallet. If cryptoassets are traded through an exchange platform, it is likely that the user has never had to manually use the private and public key system.