Hey,guys how is going well ? Today i am going to share with you a article about which wallet you should use for store your bitcoin as you know that many people often ask the question, which wallet will you use to hold Bitcoin for a long time or if you use which wallet you are less likely to steal funds? In this case, most people suggest using a coinbase wallet or a blockchain wallet which is not really accurate. Which wallet to use then? Today we have this article with the answers to these questions. Hopefully after reading this you will be able to decide for yourself which wallet you should use or which wallet is the safest.
At the outset I would like to say a few words about some of our traditional money savings. We usually deposit money in the bank or with ourselves. Having money on your own means you can spend it whenever you want. You need money now, you can spend it wherever you want. On the other hand, when you put money in the bank - you have to go to the bank, stand in line with the check and withdraw money or go to the ATM booth to withdraw money. Then you can spend.
Again, keeping money in the bank means you let someone else save your money. He may even go bankrupt. Or the government wants to find out the source of the money you have. Then your bank will hold or lock your account until the problem is over.
This does not mean that you should keep money in the bank or keep it in Bitcoin. I have written this so that you can understand the difference between keeping money for yourself and depositing money with other people or organizations.
These are called custodial and non-custodial.
Custodial wallet
The wallets in which you deposit your bitcoin with any other organization are custodial wallets. For example, the bank custodial wallet can be said from the previous example. In the case of Bitcoin, the custodial wallet is Coinbase. In addition, if you use any exchange as a wallet, they are also a custodial wallet. Such as- binance, kucoin , Okex etc. If you want to send Bitcoin to someone here, they have to ask for withdrawal, then they send it after some time. Again, if they ever seem to have a problem with something, they ask you to provide other details, including your National ID.
Non-custodial
A non-custodial wallet means you keep money in your pocket. When you can give to someone you want, no withdrawal requests or waiting, you can give immediately. You have control over everything here. There are many such non-custodial wallets for Bitcoin. Such as- Bitcoin Core, Electrum Wallet, Hardware Wallet (Laser, Treasure, SafePal) etc.
We learned what Custodial Wallet and Non-Custodial Wallet are and what are the basic differences between them. Which wallet would you use? I am on non-custodial.
Now come to the next step. Because, non-custodial has different parts. Of these, the most common are hot wallets and cold wallets. Let's find out which one is which and which wallet you will use for a long time.
Hot wallet
Do you understand anything by hearing the name? Hot wallets are those wallets that are directly connected to the Internet. For example, any software wallet. Electrum wallet or bitcoin core or any other wallet that needs to be connected directly to the internet to use. In this case, if you use a secure device, the risk is a little less, but it is not a risk at all. Since your device is directly connected to the Internet, your wallet may be hacked.
Cold wallet
Cold wallets are fairly unlikely to be hacked. Not that there is absolutely no risk. However, since you are not connecting your device directly to the Internet, the risk is much lower. Cold wallet refers to hardware wallet or paper wallet. If you generate a paper wallet offline, then there is no risk. But when you go to send Bitcoin to someone in a paper wallet, you just have to go online or borrow from a hardware wallet. In the case of a hardware wallet, you digitally sign a transaction with your hardware wallet that takes place offline and release it with another device. So the risk is much lower in this case.
Now you hope you can decide for yourself which bitcoin wallet is best and which wallet will be best for holding bitcoin for a long time.