- In a difficult time in the world of cryptography where many people have been hurt lately, we are forced to give several tips and tricks about Crypto Wallets.
- Crypto wallets or wallets are essential, but to avoid the risk of a central point of failure, we must avoid that all our operations come from a single wallet.
You could say that we are living in a crypto Wild West. It is here that, for those people who decide to stay, they need a guide quick to beginners of Crypto Wallet. We are going to provide a small series of tips and tricks to help you on your journey of confidence and self-sovereignty.
Practical and quick guide for beginners on Crypto Wallet
We cannot do without wallets or wallets. However, in order to avoid risk at a central point of failure where all interactions come from a single wallet, it is important to learn how to split the wallet into different wallets depending on usage. Let’s be honest, there are enough to give every star we see in the sky a wallet.
Although there are two main types of crypto wallet: hot wallet and cold wallet. The first is the hot wallet, which would be the one that is always connected to the internet; although there is also the cold wallet, which only connects to the internet to sign transactions.
But before we dig into these two cases, let’s look at the main wallet, which interacts as a trusted fiat gateway as exchanges to get funds in and out. It may be a hot or cold wallet, depending on the amount you’re transacting, though it comes down to very personal preference.
The hardware wallet that holds our long-term assets. It would not be a good idea to leave our net worth in a run-of-the-mill exchange.
The hot wallet is used for whitelisting for crypto generators that interact with different projects or protocols that are not trusted (for now) this has to be a separate wallet, like a secondary wallet.
A “Burner hot wallet” is used for high-risk profile interactions, everyone will know where they want to use it.
We can summarize it a little more
- Main wallet for exchanges.
- Wallet for long term storage.
- Exchange of wallet1 for untrusted Dapps.
- Trading wallet2 for reliable Dapps.
- Burner hot wallet for high-risk interactions.
- Wallet for short and medium term storage.
What we must consider at all times is that our cryptosecurity management is a business, we must never stop seeing it this way. The moment we don’t take it as such, we leave everything to chance. And as we all know, we could say that luck is not always on our side.
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