Open the CóinSpot Login page, and enter your login details to sign in.; On the dashboard of CōinSpot, click the “Profile Icon” in the top-right corner. Select the “My Account”.
To put it simply, cryptocurrency wallets are similar to bank accounts, but without the intermediary. Crypto wallets are similar to bank accounts in that they allow you to manage your currency funds.
Crypto transactions occur on a blockchain utilising public and private keys. These keys can be thought of as the crypto equivalent of a bank account number and internet banking login information. The former is something you can share with others in exchange for money in your account. Your private key, on the other hand, is more akin to the key to your secret safe. The private key allows you to access your cryptocurrency funds, which are always stored on a blockchain.
As you set up a personal cryptocurrency wallet, it will create your public and private keys and interact with blockchains to display the amount of cryptocurrencies you own. You can think of the crypto wallet as a link between you and your crypto funds, which are stored on the blockchain. You can also use cryptocurrency wallets to buy, sell, store, and spend cryptocurrencies.
When researching crypto wallets, you may have come across many different terms, such as soft wallets, hard wallets, hot wallets, cold wallets, online wallets, Trezor, and Ledger. What does it all mean? To put it simply, there are two primary types of crypto wallets: hot wallets and cold wallets.
Hot wallets are crypto wallets that are connected to the internet. Desktop, mobile, and online wallets are all examples of software or soft wallets.
Cold wallets are crypto wallets that come in a physical form and are not connected to the internet, which makes them more secure. Cold wallets are also known as hardware or hard wallets, which look and work similarly to a USB flash drive.
If we classify hot wallets based on guardianship, there are 2 types of hot wallets: custodial and non-custodial. If we classify wallets by direct internet connection , there are online wallets and desktop/mobile wallets. Let’s dive into these 4 wallet types.
Custodial (Exchange-Based) Wallets
If you’ve ever registered with a cryptocurrency exchange such as Coinspot, Binance, or Crypto.com, you already have a custodial wallet. A custodial, or exchange-based wallet, is integrated within the platform or app used to purchase cryptocurrency and requires no additional setup.
A custodial wallet is extremely user-friendly because your exchange has “custody” of your wallet, requiring less responsibility from your end in terms of password storage and security management.
Custodial wallets are an excellent option for investors that need quick access to their digital assets for purchase and sale. If you usually reorganise your crypto portfolio, selling some Bitcoin in the morning and buying some ETH in the evening, then a custodial wallet is probably the best solution for you.
Non-custodial wallets, on the other hand, are typically in the form of a completely independent app or programme, implying that the wallet has some additional built-in security measures.
When you sign up for a non-custodial wallet, you will be prompted to create a “seed phrase,” which is a 12- to 24-word sequence generated randomly. A seed phrase is sometimes referred to as your “keys.” While a non-custodial wallet is safer because no third party can block you from accessing your crypto assets, if you lose your seed phrase, you also lose your crypto.
For a lot of people, their first crypto wallet is an online wallet that the cryptocurrency exchange provides them when they make their first purchase. For example, if you sign up with CoinSpot, the best crypto exchange for investors in Australia, and buy $500 of Bitcoin, your Bitcoin will be stored in an online wallet on the CoinSpot exchange. You can sell it, hold it or transfer it to a different wallet. Since you are using an online wallet, your account may be compromised if someone hacks into your account. Fortunately, CoinSpot has never reported any data breaches ever since it first entered the crypto market in 2013.
One of the advantages of using online wallets is that you can easily access them anytime and anywhere as long as you have an internet connection. You won’t have to worry about your device crashing or being stolen. Many online wallets will require identity verification as part of the setup process.
Last modified 13d ago