Digital assets - A quick look
In
the fiat realm, the digital asset is anything that has to do with images and
text. Let me tell you in general; assets are anything that holds monetary value
to it. However, when it comes to the crypto world, it is all about
cryptocurrencies. There are numerous cryptocurrencies and tokens. All of these
come under digital assets or virtual currencies.
Just
like you would put your fiat currencies in a wallet for everyday use, there are
ways you can save digital assets in a wallet too. Here is a list of the
different types of wallets that one can get in the crypto market.
1.
Hardware wallets
This
is a way to store the assets offline (without internet connection). One of the
safest ways to avoid hacks. However, you should be careful in not losing it
anywhere. This device resembles a USB and comes with OLED screens and buttons
on the sides to navigate. You can connect this with a working system and use.
Some
examples of hardware wallets are - Digital Bitbox, KeepKey, trezor, Ledger
Nano, Ledger Nano S.
2. Cryptocurrency hot storage wallet
In
this method, you will be given a software wallet where you can save your
cryptos. However, it is your responsibility to be safe from the hacks. Make
sure you have two-factor authentication. Also, the software wallet can be
installed on phones, laptops, tablets, desktops, and what not.
This
makes the whole usage of cryptocurrencies a lot easier. You get to access your
cryptos from anywhere if you have an internet connection.
3. Paper wallets
The
wallets are printed on a paper with a unique combination of alphabets and
numbers. These also contain QR codes that are non-identical. Every buyer and
sender has unique public and private keys. Using paper wallets is tough because
it requires huge caution and knowledge.
If
you were not very clear about the digital assets, then I hope this blog has
given you an idea. More information on blockchain and cryptocurrencies coming
up. Keep watching this space.
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