Introduction
A digital purse or wallet is actually a software or application where it is possible to store, send and receive cryptocurrencies.
The truth is that unlike a physical money wallet, what is really stored in digital wallets or wallets are the keys that give us ownership and rights over cryptocurrencies, and allow us to operate with them.
In other words, it is enough to know the keys to be able to transfer the cryptocurrencies, and the loss or theft of the keys can mean the loss of the cryptocurrencies, with no possibility of recovering them.
There are two types of wallets: there are hot ones and cold ones, both will serve you both to send and to collect with cryptocurrencies.
Hot wallets
Always connected to the internet, so they are digital wallets that are available online through any device, be it PC or mobile. They are the most practical in terms of having your cryptocurrencies available to transfer instantly, although they are also the most vulnerable, since they are always on the web. Thus, within the hot wallets we find web wallets, such as Metamask, Solflare, Binance, Trust Wallet, Phantom Wallet, mobile wallets and desktop wallets, the latter only if the computer is connected to the internet.
“They are digital wallets that are available online through any device”
Cold wallets
Unlike hot wallets, cold wallets cannot be accessed over the Internet. These types of digital wallets are physical devices, in which cryptocurrencies are stored securely. On the contrary, within cold wallets there are hardware wallets and paper wallets, which is simply the printing of the private key on paper.
The most popular brands of Cold Wallets are Ledger with its Ledger Nano S or Ledger Nano X models and Trezor with its Trezor Model T model.
“They are physical devices, in which cryptocurrencies are stored securely.”
Conclusion
In my opinion, no wallet is better than the other, but it will depend on the need and utility that we need to give it. Surely to store currencies in a medium or long term, cold wallets are more secure, but in the case of currencies that we need to operate on a day-to-day basis, the hot ones are. It is very important that you know that these custody services are not regulated or supervised. and therefore there is no entity that is responsible for losses or thefts that you may suffer.
