Intro to Crypto Wallets
If you're familiar with web3 fundamentals and already have your own crypto wallet, feel free to jump ahead to the next section!
A crypto wallet is a storage system for your digital assets like cryptocurrencies, NFTs, and more. The contents of each crypto wallet can be accessed by a unique key made of a combination of letters and numbers explicitly assigned to the wallet’s creator (called a private key).
A crypto wallet’s public key is the public address of the user’s wallet. Think of it as a business address available publicly on the web. Anyone can use a wallet’s public key to look up and verify transaction information, however, personal information is not posted to the blockchain.
There are many forms of crypto wallets, with many options being available digitally like MetaMask, Coinbase Wallet, and Phantom wallet. While there are many options available as browser extensions and mobile apps, there are also hardware wallets (physical devices that store and protect your private keys).
A hot wallet is one of the most common ways to store crypto assets. It’s a very convenient option because it’s typically accessed via web, mobile, or desktop. However, because hot wallets are always online, they are more vulnerable to attacks.
For best safety practices, a cold wallet is recommended. Unlike hot wallets, cold wallets are hardware devices that require physical input to unlock. While cold wallets aren’t as convenient and are less accessible due to costing a fee to purchase, they provide the best security, as no one can access their contents without interacting in person with the hardware wallet. Some popular cold storage options include Ledger and Trezor.
Writers: Kristen, Editors: Deborah Emeni, Christina Mills