What you would like to know about crypto wallets

Different kinds of wallets

By the way, using the wallet address, you can keep track of all payments (transactions) and the current balance. Moreover, the wallet itself does not contain your personal information, but the owner can be traced in many ways, such as the phone number, email address, or even through your bank card, if the wallet is bonded to it, of course. Because of this, the concept of pseudo-anonymity appeared, since there is no absolute anonymity in the blockchain environment. Therefore, we usually classify wallets as software, hardware, or paper based on the way of interaction with the owner. It is worth noting the fact that so-called paper wallets (a piece of paper) have become an outdated method since they contain passwords or QR code that leads to all necessary information of your crypto-currency and allows you to transfer the money. Thus, we specify hot and cold wallets. The fundamental difference is that hot wallets require special software, whereas cold ones exist in the hardware form.

Hot or cold wallet

A hot crypto wallet has an active online connection, meaning it is immediately connected to the Internet. Moreover, it is instantly accessible from any device with an Internet connection. Online wallets are less secure than cold wallets since you register your hot wallets remotely and store the data on a server constantly. As a result, it makes them vulnerable to hacker attacks. Despite this, human factors and security issues forced the developers of purses to implement additional security measures such as SMS confirmation, two-factor authentication, multi-signatures, HD wallet, tokens, making this type of crypto saving more reliable and user-friendly.

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BIT4YOU.io

BIT4YOU.io

bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.