What is Digital Wallet?

What is Digital Wallet?

As long as this capsule is about currencies and transactions, so we need to talk about portfolio, wallet, safe box, or any of the tools in which we save or keep money.

And as we say: everything has its counterpart or analogy, including the peer-to-peer theory, which we will explain in an upcoming capsule.

Types of Digital Wallets

So, banknotes require leather or woven wallet to keep, while the digital currencies require digital or electronic wallet, or whatever we save data.

Hot Wallet

There are two types of digital wallets, first of which is called “Hot Wallet”, like hotline which is available 24/7, where it is on the Internet and is available all the time and wherever you have access to the Internet, such as the Blockchain portfolio. https://www.blockchain.com/

The proverb says “There’s no Reward Without Risk”, so as the wallet grants you access to your money all the time, in exchange for that, in some wallets you may have to leave your data keys on the servers of the company that provide you with the wallet service, and therefore in the event that those servers are subject to an electronic attack, your keys may be lost with what is stolen.

Cold Wallet

The second type of wallet is like a safe, which is a data storage unit, has the private and public keys for your account, and it is usually not connected to the Internet and therefore cannot be hacked, unless someone steals it, and it is called the cold wallet.

It is worth mentioning that if you forgot your private key, your money is lost. As for the public key through which you allow others to enter your wallet to make sure that it has a balance, this can be recovered. The most famous types are Trezor and Ledger Nano S.

Paper wallet

Despite all the latest technology in blockchain and digital currencies, the idea of paper has not been abolished, as it is one of the portfolios in which you can keep your data, a paper printed with “QR codes”, which is like the one who keeps data in a paper book, if water is consumed, the data or money is lost. walletgenerator is a good example for that. So, the amount of gains is usually related to the size of the risk.

Major Crypto Payment Firm Bitpay Allows Payment via Bitcoin Wallet

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