If you’re interested in hardware wallets (highly useful for additional security!), Trezor and Ledger are two of the most trusted brands on the market. Whichever wallet you choose, be sure to follow all the instruction prompts when setting it up, and write down your seed recovery phrase in a safe place. Of course, there are other great software wallets out there, including WalletConnect and Rainbow Wallet. This wallet plugs into your desktop or mobile web browser and allows you to log in and transact on many NFT platforms. MetaMask is one of the most popular software wallets used to manage cryptocurrency transactions, and it’s a great starting point for newcomers. But for safety reasons, you should use a hardware wallet to store your most valuable assets. When it comes to minting and shorter-term trades, a hot wallet is the way to go. Since your private keys never leave your device, malware can’t obtain the information needed to falsify a signature. This is because transaction signings are completed with your private keys in-device and then broadcast to the network via the internet connection. ![]() What’s more, even when hardware wallets are connected, the items stored on the drive are difficult (if not impossible) to steal. Because these wallets can be completely isolated from the network, assets stored in hardware wallets are often considered to be in “cold storage” and far more secure than software wallets. All of your digital currency and assets will be stored on the device rather than inside online servers. To access the information stored on this wallet, you’ll need to physically plug it into your computer. Popular examples include Ledger and Trezor. Except that, in this case, you are storing your crypto and NFTs. This is a physical device that is generally pretty similar to a USB stick that you might use to store files from your computer. As a result, they are typically seen as being less secure.Ī hardware wallet (also known as a “cold wallet”): However, these wallets are more open to attacks and easier to hack. Generally, software wallets are more convenient and can be accessed more easily than hardware wallets because private keys are stored online and the wallet is always connected to the internet. Many marketplaces require you to use a software wallet in order to facilitate transactions, which makes this type of wallet essential for fast and easy trading. Popular examples include MetaMask, WalletConnect, Rainbow Wallet, and more. This is an application that can be downloaded and installed on your desktop or mobile device. There are two basic types of crypto wallets: software and hardware wallets.Ī software wallet (also known as a “hot wallet”): Specifically, your private key lets you initiate transactions, which is called “signing.” What’s a hot and cold wallet? They allow you to access and manage the specific items in your wallet. However, if you lose or forget your seed phrase, you lose access to your wallet and all the assets it contains - forever. If you delete your crypto wallet, you can recreate it and access everything in it using your seed phrase. In this analogy, your seed phrase acts as the master password for your wallet – it allows you to access your crypto wallet. To understand how all of these things work together, it helps to think of a crypto wallet as a password manager for your digital assets. The wallet uses the seed to create private keys. Never ever share your seed phrase or private keys with anyone or they will be able to access your assets! In short, when you create a crypto wallet, it automatically generates a series of words known as a “seed phrase” (also called a “recovery phrase”). ![]() However, the way they work is really rather simple. How do crypto wallets work?Īs you might expect, crypto wallets involve a bit of technical jargon. In short, a crypto wallet is a physical device or computer program that allows you to store and transfer digital assets. Unfortunately, you can’t do the same with crypto and NFTs. So, before you get started with NFTs, you’ll need something to store your crypto and the digital assets you acquire in the crypto space. Or you can stack all your bills together and store them in a safe. You can take a dollar bill, fold it in half, and carry it around in your pocket.
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