Steemit Crypto Academy Contest / S3W3 - The Wallets by @malikusman1. [#club100 and #burnsteem25]
WALLETS
My dear friends, a piece of software called a cryptocurrency wallet manages the secret keys that are used to sign crypto transactions on digitally distributed ledgers. They play a very important role in the cryptocurrency world and without them cryptocurrency is completely worthless.
They are an important component of the cryptocurrency ecosystem because these keys are the only means of demonstrating ownership of digital assets and executing transactions that transfer or otherwise exchange them.
They are like car fuel and are commonly referred to as crypto wallets. Without them the automobile cannot start. Furthermore, without them it would be impossible to demonstrate ownership of digital objects. Anything, whether a bitcoin or any other token, represents a specific commodity.
Friends, a crypto wallet not only tracks the encryption keys used to digitally sign transactions, but also stores the blockchain address where a specific item is located. The owner effectively loses possession of their digital currency or other asset if they lose that address. Crypto money wallet also has some types that are given below.
TYPES OF CRYPTO WALLETS
There are two main types of crypto money wallets. They are hardware or cold wallet and software or hot wallet. Now let disscuss these wallets one by one.
- HOT WALLET
Hot storage wallets, also known as online wallets, can be accessed online through a service like Coinbase, one of the largest cryptocurrency exchanges offering online wallets to users. A distinction can also be made between online wallets and client-side wallets, which are held locally on a user's computer or mobile device.
Additionally, there are paper wallet generators that provide keys that can be printed or converted to QR codes. But these wallets are not so much secure because they are online wallets. and anything that is online has a chance of hacking. The advantage of these wallets are that they are user friendly.
- COLD WALLET
Cold storage wallets are downloaded onto a piece of hardware, such as a USB drive or a smartphone, and remain there offline. Additionally, devices can be purchased with pre-installed software that can be used as cold storage wallets.
Hardware wallets are another option. These take care of creating and signing prepared transactions before sending them to the distributed ledger network. The hardware talks to the blockchain through the device's codes when you interact with it. But its disadvantage is that they are no so much user friendly.
IMPORTANCE OF CRYPTO WALLETS
You may send and receive cryptocurrencies like Bitcoin, Ethereum and ADA by using crypto wallets, which keep your private keys, or the passwords that let you access to your cryptocurrency, safe and readily available. Crypto wallets do not technically store your crypto, unlike a normal wallet, which can hold real money.
Your holdings are kept on the blockchain, but accessing them requires a private key. Your keys support transactions and prove that you are the rightful owner of your digital currency. If you lose your secret or private keys, you won't be able to access your cryptocurrency funds or assets. So this is the importance of wallets because of this we can keep our crypto assets save.
MY OWN WALLETS
Dear friends in crypto wallets we can save our assets very easily and we can also use them. I am currently using two wallets they are very good and awesome. The name of these wallets are Tron Link Pro and Trust wallet.
WHY I DID CHOOSE TRON LINK
Guys, I have chosen this wallet for several reasons. Through local storage of private key and multi-layer algorithm encryption, it enables assurance of data security. To achieve physical isolation and double protection, you can sign in with your hot wallet and store your money in your cold wallet. It supports automatic reconnection and offers free switching between nodes.
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Creation of multiple wallet accounts are all supported in this wallet. With different use cases and a new signing method, it enables multiple accounts to control a set of assets. You can use resources instead of paying for gas and voting SRs to win a significant amount of TRX by putting TRX into this wallet.
WHY I DID CHOOSE TRUST WALLET
Guys, I have chosen this wallet for multiple benefits. Its first benefit is that the vendor gives you a private access key, ensuring that only you have access to your valuable financial information. Trust wallet is compatible with a wide range of cryptocurrencies that are currently in circulation. It offers comprehensive cryptocurrency management functions and enables you to buy, sell and exchange various coins, blockchains and other digital assets.
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Multiple cryptocurrency exchanges make buying cryptocurrency difficult. Trust wallet solves this by making it easy for you to buy cryptocurrency with your credit card so you can start trading right away. You can find companies and suppliers that accept cryptocurrency for their products and services using the helpful DApps browser that comes with Trust wallet. So that is why I did chose it.
MY EXPERIENCE WITH THESE WALLETS
Both of these wallets are great and awesome, they are very secure and efficient. These wallets help me a lot during my crypto transactions. I store many of my crypto assets in these wallets. These wallets are very user friendly. The result is that I have a reliable experience with these wallets.
HAVE I EXPERIENCED ANY THEFT?
Friends Hackers are people who can hack or will steal anything you have online. These people have a very good ability to do hacking. Anything related to technology can be hack. And if we talk about that I have faced any theft, then the answer is no. I am very grateful to Allah Almighty that since I have entered the crypto market, I have not faced any theft or fund hacking.
HOW I PROTECT MY CRYPTO ASSETS
I protect my cryptocurrency very well and if I stay this way I hope it will never get stolen or hacked. These methods are explained below.
- I also always keep my crypto assets in decentralized wallets as there is less chance of hacking.
- I never keep my cryptos in one place but in different places. Because its a secure method.
- I never keep my crypto assets on centralized exchanges. because its has a chance of hacking.
- I keep all my wallet passwords and seed phrases in safe places.
- I've never clicked on a stranger's link because that's can stole you assets.
So these were some of the things that help me in protecting my crypto and I hope that if I keep doing this I will never be a victim of theft.
MY OPINION ON HOT AND COLD WALLETS
Guys, I prefer cold wallet because it doesn't have internet connection, which makes it more secure than hot wallet. Most cryptocurrency attacks have occurred when a hacker accesses an online wallet service and copies the secret keys into their own wallet, thereby transferring the associated funds.
For example, in year 2014, 850k bitcoins (BTC) worth more than $450 million were traded on Japanese online cryptocurrency exchange Mt.Gox's hot wallet was stolen. Additionally, bitcoin exchange Coincheck's hot wallet service experienced the theft of nearly $1 billion worth of cryptos in the year 2018.
Over the past years, there have been a large number of petty thefts, usually as a result of online wallet attacks. So guys from these thefts we can guess how much insecure and harmful hot or online wallets are. And on the other hand cold wallets are much more secure that's why I prefer cold wallet because it's much more secure.
Other Details:-
| TOPIC | CRYPTO WALLETS |
|---|---|
| COMMUNITY | STEEMIT CRYPTO ACADEMY |
| DATE | 05/08/2022 |
| AURTHOR | @malikusman1 |
| AURTHOR PICTURE |  |
https://steemit.com/hive-172186/@malikusman1/achievement-1-by-introduction-malikusman1
WRITER:
Thanks for your sharing to us useful and informative article about wallet, i will join this challenge
Thank you brother for appriciating my work. I hope that you will also take part soon. Best of luck for this contest also.
You make a very comprehensive list of recommendations to avoid hacking and theft of funds stored in Wallets, and like you, I have not experienced theft either.
Thanks for sharing and success!
Wow thank God that you are also save from fund hacking. Wish you best of luck for this contest also.
No doubt the Crypto wallet are very useful and beneficial if a crypto trader have to continue his trading journey. Although, the exchanges have also storage capacity of billions of dollars but these exchange wallets are less secure as compared to the other crypto wallets.
Yeah you are very right that the cold wallets are much more secure and private than the hot wallets. Your understanding about the Crypto wallets is really appreciable.
Thanks a lot for sharing with us.
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Thank you for you valuable and precious comment on my post. I appriciate it.
Your presentation is nicely done as always
Your explanations are very clear as well
From your post if I were to choose a wallet, I'll chose the cold wallet too.
Good luck with the contest ✌️
Thank you for you comment my dear friend. Yes, cold wallets are very good.
No doubt your methods of keeping your wallets safe are all on point. One of best ways to avoid hack and theft is to avoid clicking on suspicious links be it emails or on other sites.
Decentralized wallets like trust wallet have a lot to offer and is very user friendly. At least you know your wallet is protected with your private key and you have access to so many web 3 wallets.
Thank you my friend for your precious comment on my post.
WOW you’ve given a nice scenario about wallets and cryptocurrency. Without wallet there is noway cryptocurrency will run. Having assets without knowing where to keep is safe is a lost asset.
Yeah this is very true, so far as the project runs with internet access, it is prone to cyber attacks. Hackers will try any possible just to have what they want.
This is a good point, in case where you suffer theft with one wallet, assets in the other wallets are safe and with time you can make up for the loss.
Cold wallet is very safe and free from cyber attacks but as a trader who can you constantly manage your assets and market fluctuates every seconds.
Please find time to visit my post as well. Good luck..!!
https://steemit.com/hive-108451/@sadiqxylo/steemit-crypto-academy-contest-s3w3-the-wallets-by-sadiqxylo
I'm commenting on your post lately today my friend. You are right that wallets don't only store of cryptocurrencies but also hold the private keys that gives us ownership. We have different choices of wallets, I love hot wallets because it's so easy to use, low initial investment and many others. It's good to read your post again in the community.
Wow, your explanation are very clear.
Nice work
Check out my own entry.
https://steemit.com/hive-108451/@edidiongeffiong/steemit-crypto-academy-contest-s3w3-the-wallets-by-edidiongeffiong