Steemit Crypto Academy Contest / S3W3 - The Wallets by @hayleydemi
I am delighted to be participating in this contest. The topic at hand is an interesting one.
What are wallets?
An app that serves as a wallet to keep your cryptocurrency is known as a cryptocurrency wallet. It is similar to a wallet in which you store some cash, which is why it is called a wallet. It doesn't actually contain these things; instead, it saves the keys required for you to approve your crypto transactions and offers the platform you need to access your cryptocurrencies.
Everybody can access the blockchain thanks to current cryptocurrency wallets. Initially, when cryptocurrencies came about, it required you to manually put in a lot of code just to send them. Majority of the work is now done for you by software.
There is nowhere where cryptocurrencies are stored. They are data bits that are kept in a database. These data bits are dispersed throughout the database; nevertheless, the wallet locates all the pieces connected to your public wallet address and adds up the total for you via the application's user interface.
Using these applications, trading cryptocurrency is incredibly simple. Multiple options are out there for traders to send and receive cryptocurrency in their wallet. The standard procedure is to enter the wallet address of the receiver, select an amount to transfer, confirm the transaction utilizing your private key, add money to cover the transaction fee, and send it.
Even simpler is receiving. The sender types in your address and follows the same process. The transaction is finalized once you confirm the payment.
Why I think wallets are important
They hold our public and private keys required for approving cryptocurrency transactions. It is important for those keys to be kept safe.
Furthermore, the wallets enable traders to do crypto transactions easier and faster
Type of wallets
The two major types of wallets are Custodial and Noncustodial wallets
An intermediate party hosts custodial wallets where they help you keep your keys. It could be a business that offers top data security services utilized by companies to data their data safe. Various crypto exchanges offer custodial wallets to their users.
Noncustodial wallets are those in which you are in charge of keeping your keys safe. Most mobile crypto wallets are in this category.
Wallets can be further divided into two groups: hot and cold
A cold wallet doesn't have connection to the internet, meanwhile a hot wallet has internet connectivity or access to a device with internet connectivity.
Which wallets do you own? Why did you choose those wallets? Talk about your experience, show screenshots of your wallets.
I own several wallet. I will talk about them here.
Trust wallet
I have a wallet with Trust Wallet. One major reason I chose this wallet is for swapping of tokens/cryptocurrencies. I connect my trust wallet to a swapping platform like Pancake swap and exchange the token/cryptocurrency I have for the one I need.
One issue I have with it is that there is a charge for almost everything you do.
Binance wallet
My binance wallet is another favorite wallet of mine. I use it for peer to peer transactions. I also use it to convert one cryptocurrency to another. The conversion doesn't cost anything.
My problem with this wallet is the limit on the minimum amount of a cryptocurrency you can convert or even send out of the wallet. The wallet is also quite complicated especially for first time users.
Rokku wallet
This wallet is also very easy to use. The interface is nice and I use it for fast transactions and for coin swaps.
The problem I have with it is that the charges are mostly high and there are too many limitations to the minimum amount of a cryptocurrency you can send out or swap
Have you suffered any theft in any of your wallets? Tell us about your experience, what do you do to protect your cryptocurrencies?
So far, I haven't suffered any theft in any of my wallets, so I don't have an experience of such.
However I have heard of cases were people lost their cryptocurrencies because somehow, someone else got access to their wallets.
What I do to prevent such a thing from happening to me and protect my cryptocurrencies is to keep the keys and password to my wallets in a very safe place that only I know of. I also lock the wallet apps in my phone with a password so that if anyone gets my phone, they won't be able to access my wallets.
Do you prefer hot wallets or cold wallets, give your opinion about.
I prefer Hot wallet to cold wallet.
While a hot wallet is quicker and makes it simpler to exchange or use cryptocurrency, it is also susceptible to cyber attacks and may result in money being stolen. While a cold wallet may be more secure, it is often not online, making it less practical.
Easy use is a benefit of hot wallets. They never go offline, therefore switching between the two is not necessary when conducting a cryptocurrency transaction. For instance, a lot of people utilize mobile hot wallets to exchange or buy cryptocurrencies. Achieving this with a cold wallet would be hectic. To do a transaction, you would first need plug in your cold wallet into device and transfer the necessary amount of cryptocurrency to a hot wallet.
Your private key is basically your digital identity. It is these keys that allow you to participate in the cryptocurrency market. You can only buy and sell your cryptocurrency via your private key. If you lose this private key, you basically lose access to your crypto assets.
And if somehow this key falls into the wrong hands, the holder of this key can at any time access your crypto wallet and make fraudulent transactions that you cannot. Hence the importance of your private key cannot be overstated.
Cyber criminals on the other hand are always looking for your private keys. They use advanced techniques where they want to hack your crypto exchange or gain access to your private keys. This is the main reason you should always be vigilant and ensure that your crypto wallet is secure at all times.
Thanks for sharing, I also share about the wallet. If you have time please see my post.
You have really made a nice post as wallet is really important to those who are into crypto as they are not basically for storing coins but also some wallets serve as a bridge between the blockchain and sometimes can be used to buy and sell crypto.
Yes dear its also KYC free wallet and you can hold Crypto for long time and you can also earn from your assets by staking overall good post stay blessed
I love how you explained crypto wallet as it serves as the storage place for our cryptocurrencies. I also use some of the wallets you showed, I frequently use Binance and Trust Wallet.
You prefer hot wallets and have clearly stated your reasons. Hot washers are indeed easier to use and perform faster transactions but they being liable to cyber attacks is what lures me to cold wallets even though I do not really understand how it works.
Yeah that’s true, but you can also connect your trust wallet to decentralized applications DApps like BitTorrent, Tor and many others to participate in metaverse gaming and earn massive from it.
It’s also my favorite, aside its low fee cost, what I also like about it is the P2P network.. we can directly buy tokens with fiat and vice versa without any third parties.
Then I won’t prefer this wallet. Having limited transactions and high fees is why I left paxful network. I earn little from trading and I can let fees take away all my profits.
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https://steemit.com/hive-108451/@sadiqxylo/steemit-crypto-academy-contest-s3w3-the-wallets-by-sadiqxylo