- Wallet is indispensable to safely trade virtual currency
- There are five types of wallets, and it is important to use them according to their purpose
There are many people who have recently started a virtual currency, but are obsessed with trading and are not looking at security.
This time, I will explain the security “ wallet ” that is indispensable to enjoy virtual currency transactions safely .
There are several types of wallets. You can use them according to your purpose, so let’s choose a wallet according to your trading style.
What is a virtual currency ” wallet “?
The virtual currency is managed as digital data, but if you purchase it , you need to keep it in your “ wallet ”.
“ Wallet ” is indispensable for virtual currency trading !
I think this “ wallet ” is easy to understand if you imagine a “ wallet ” that stores virtual currency . Of course, it is necessary not only to keep it because it is a “ wallet ” , but also to send and receive money.
Can be stored on the exchange
In order to trade virtual currency, you use the “ exchange ”, but after purchasing the virtual currency, it is possible to store it not only in the “ wallet ” but also in the “ exchange ”.
This is called an “ exchange wallet ”. It is easy to access as long as there is an internet environment, and it is advantageous to be able to use it from various devices such as personal computers and smartphones.
We introduced that ” wallet ” is necessary to hold virtual currency . Here is a more detailed explanation of the wallet.
Wallets can be broadly divided into two types: “ hot wallets ” and “ cold wallets ”.
- Hot wallet
There are ” Web Wallet / Mobile Wallet / Desktop Wallet ” in Hot Wallet . These three will be explained in detail later.
A hot wallet is a wallet created on the Internet, so it can be used anytime as long as the Internet is connected. However, this point needs to be taken with extreme caution as it can cause hacking damage.
- Cold wallet
There are two types of cold wallets : hardware wallets and paper wallets . I will explain these two in detail later.
How the wallet works?
“ Wallet ” is used to store the virtual currency that is held, but it also manages the “ public key / private key / address ” necessary for trading the virtual currency .
“ Public and private keys are one of the encryption technologies. In cryptocurrencies, these two keys and“ address ”are used for remittance. This “ public key ” encrypts the original text and decrypts it with the “ private key ”.
However, these three have the order in which they are created, in the order of private key-> public key-> address. Therefore, the “ secret key ” must never be known by anyone other than yourself. If this ” secret key ” is known to someone other than yourself, your own virtual currency may be stolen.
There are 5 types of wallets!
There are five types of wallets.
It is as follows when arranged by safety degree.
|Web wallet||Hot wallet||small|
|Mobile wallet||Hot wallet||During ~|
|Desktop wallet||Hot wallet||During ~|
|Hardware wallet||Cold wallet||Big|
|Paper wallet||Cold wallet||Big|
As you can see, the web wallet is the least secure and the paper wallet is the most secure.
The most commonly used ” Web Wallet “
“ Web wallet ” refers to a wallet created on the Internet, and a wallet that manages virtual currency within the server of the publisher. ” Exchange wallet ” is one of these ” Web wallets “.
It is characterized by high convenience, and you can trade whenever you are connected to the Internet . Also, the security aspect is left to the administrator, so it is important to choose which service.
- Nano Wallet
- Toast Wallet
MetaMask is a desktop wallet that can store Ethereum and ERC20 tokens. Because it is installed in the extension function of Google Chrome, it can be easily installed and used by Chrome users. It can also be used on Firefox, Opera, and Brave.
There are many advantages, such as the fact that the operation on the Web is light and the function that can block phishing sites is standard.
|Currency||ETH / ERC20 token|
MyEtherWallet is a desktop wallet that can store Ethereum tokens. All Ethereum tokens are supported, with over 600 types. It can be used in conjunction with hardware wallets and MetaMask.
|Currency||ETH / ERC20 token|
Nano Wallet is a desktop wallet that can store virtual currency XEM issued by NEM. Because it is an official wallet provided by the NEM developer, it combines reliability and safety. Furthermore, if you have more than 10000 XEMs, you can automatically receive money at Harvest.
Toast Wallet is a hot wallet that can only store ripples, and is compatible with desktop and mobile wallets. Since it can be operated intuitively, it is easy to store and send and receive ripples. However, since it is always managed online, it is suitable for holding a small amount of funds for daily use.
TREZOR is a hardware wallet that can safely manage virtual currency offline. Since the secret key is managed using a physical device, it is known as a highly secure storage method that is resistant to external hacking attacks.
|Currency||BTC / BCH / ETH / LTC etc.|
waveswallet is a unique desktop wallet provided by the creator of cryptocurrency Waves. Bitcoin and other virtual currencies can be stored in addition to Waves.
The main feature is that it is air-dropped by storing various virtual currencies on waveswallet. There is also an advantage that you can get dividends by depositing Waves.
|Currency||Waves, BTC, etc.|
You can manage the virtual currency you own at the exchange, but in the unlikely event, it is important to manage by using several “ wallets ”. Understanding the “ wallet ” and diversifying risk is an essential part of trading virtual currency.
When you start a virtual currency, be sure to get a “ wallet ” together.