Cryptocurrency is a money that is a digital money that is stored in a blockchain. And to own a crypto currency you need to o
Have a wallet.
Source
A wallet is a tool tool that allow us to store, send and receive crypto currency.
The two types of wallets are the Hot wallets and the cold wallets. The hot wallet is online wallet. while the cold wallets is offline waller. Let me explain: the hot wallet is just like a simple pocket in your cloth that is easily access by you, but it is also easily accessible to pickpockets.
While the cold wallets is like a bank vault, the bank vault is very protected but is less convenient. Explaining further :
Hot wallets
What Is a Hot Wallets? A hot wallet is any wallets connected to the internet, software or an app on your phone, computer, or browser. Examples of hot wallets using Mobile apps are like : MetaMask, Trust Wallet, Coinbase Wallet.
Web wallets: Exchange accounts like Binance or Coinbase.
Examples of hot wallets using browser extensions: MetaMask on Chrome.
Imagine your hot wallet as a debit ATM card in your pocket you that wanted use it to buy coffee (send crypto) or check your balance instantly. It’s fast and convenient.
It has an advantage of speed buy Sending or receiving crypto in seconds.
Ease: Free to set up, user-friendly for beginners.
The disadvantage of it is that hackers can target your device or phishing sites.
Hot wallets Supports DeFi, NFTs, staking, and dApps.
What Is a Cold Wallet? A cold wallets is a completely offline waller that generates and stores private keys without ever touching the internet. A cold wallet is just like a safe deposit box at thr bank you can spend it instantly and no thief can just steal it anyhow. The advantages of cold wallets is that they are immune from al this online hackers, and phishing.