Trezor is another big name in the hardware wallet space. Ledger, for example, has been making cold wallets for years now and could be a good place to start. Over the years, certain companies have emerged as reliable crypto hardware wallet manufacturers. Hot Wallet: A software-based digital wallet that is connected to the internet and often comes in the form of an app. Cold wallets come with multiple layers of security, and are more difficult to hack than an internet-connected wallet.
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They’re known by several names-hot wallet, hardware wallet, software wallet-but come in two main types:Ĭold Wallet: A physical, hardware-based digital wallet for storing cryptocurrency that isn’t connected to the internet, akin to a very high-tech flash drive for storing cryptocurrency. With that in mind, never invest more than you can afford to lose when purchasing cryptocurrency.īefore you buy digital currency, you need a place to store it, and that’s where crypto wallets come in. You’ll also need to go into the experience with an understanding that cryptocurrencies-and Bitcoin in particular-can be volatile, drastically changing in value from one day to the next. Make sure you have a fast, reliable internet connection. Set up an account with a reputable cryptocurrency exchange.Ĭollect the documents needed to verify your identity for Know Your Customer (KYC) exchanges. But don’t worry, you can still buy Bitcoin in fractional amounts even if you aren’t obscenely wealthy. Before you buy your slice of Bitcoin pie, however, there are a few things you’ll need to do first. However, these tips can apply to other cryptocurrencies like Ethereum (or even Dogecoin, if that’s your thing).Īt the time of this writing, Bitcoin is experiencing record highs in price.
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