Crypto Wallet Types

Crypto Wallet Types

Crypto traders and investors receive a profit using crypto due to its volatility. Frequent price changes allow to buy cryptocurrency and then sell it at a higher price. 

To make trades with cryptocurrency, holders have to hold it somewhere. And there are a couple of options for crypto storage:

  • Cold wallets 
  • Hot wallets. 

Cold wallets mean offline storage such as ledgers, paper wallets, USBs, etc. That is any device with no Internet connection that third parties cannot reach. Such wallets are suitable for holding crypto in the long term when you buy cryptocurrency and don’t sell it for many months or even years. 

Another type of storage is “hot”. It is online storage such as crypto exchanges, clouds, etc., connected to the internet and suitable for frequent operations with funds.

What Is A Cryptocurrency Exchange Wallet?

Keeping your funds on a crypto exchange wallet, you should understand that, in this case, private keys are stored on the platform you use. On the other hand, when using a credible and reliable crypto platform, the responsibility for the safety of funds is shared between the user and the exchange. 

Here are the most reliable crypto platforms:

  • Coinbase
  • WhiteBIT
  • Binance.

An exchange wallet fits those who need convenient storage for frequent and efficient daily trading. Usually, large amounts of crypto are stored on offline wallets, while smaller amounts are constantly actively traded through hot wallets. Or another way to store coins is the WhiteBIT exchange. It stores 96% of users’ funds in offline wallets, and the rest 4% is actively traded online. That is a good alternative for ensuring users’ funds’ protection. 

With funds on a hot crypto wallet, users can conveniently use all the tools on the crypto exchange platform, conduct fast transactions and react to every market fluctuation, whether intraday trading, position trading, or market futures and leverage trading.

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