Let’s learn about Blockchain wallets, the different wallet types, and safety measures you can take to safeguard your wallet from malicious acts

What Is A Blockchain Wallet?

In real life, your wallet may contain cash and credit/debit cards. But in the Blockchain, a wallet holds keys. These keys give you access to your cryptocurrencies(eth, Matic, sol, etc).

The keys in your wallet are your private & public keys. While you can share your public key with anyone to enable you to receive transactions, you can’t share your private key with anyone, otherwise, you risk your funds being stolen.

Wallet holds your private keys which gives you access to your crypto

With a Blockchain wallet, you can send and receive transactions, connect and interact with web3 applications, check your balance, swap tokens, switch between different protocols(Ethereum, polygon, Solana), etc.

A blockchain wallet acts as an intermediary between you and your cryptocurrency.

Types of Blockchain Wallet

Hardware / Physical wallet:
It is not a popular wallet choice but it is the most secure. Just like its name, this wallet type can be seen, touched, and even carried around in your back pocket or handbag. Example:

Ledger Nano S

Trezor

Hardware/physical wallet is the most secure because, unlike other wallet types, it is not connected to the internet and therefore is not easily accessible by online hackers.
Hardware wallets are mostly used by big crypto traders with huge assets.

Someone said it is easy to know an expert or beginner trader just by their choice of wallet, perhaps it's true or not. But when you have so much at stake, you will opt for the best and most secure wallet type.

This wallet type is also known as a cold wallet because it is not connected to the internet.

2. Software wallet: the most popular and widely used wallet type. This is the wallet type that you connected to your NODO Profile. Software wallets are less secure due to their connection to the internet and, hence, vulnerable to hacking.
Examples of software wallets are Metasmask, Coinbase, and Trust wallet.

Software wallets are also known as hot wallets because they are always connected to the internet.

Safety Measures

Do not forget your password: Right now, it is impossible to recover the password to your wallet if forgotten. It is advised that you copy your wallet seed phrase somewhere in the exact order as seen on your wallet, as this is the only way you can gain access to your wallet without the password.

A seed phrase is a combination of 12 random words, something like this:

2. Do not use your wallet on a random phone or computer, as this could expose your private keys to malicious acts.

3. Always disconnect your wallet from web3 applications after usage. You do not want your assets drained!

4. If you are an explorer and you love to try and use different blockchain platforms, then it’s in your best interest that you create a different account on your wallet for that purpose, it should be separated from one that holds your asset.

5) Check and double-check, don’t be too quick to click on links telling you to sign up for airdrop and free gifts.