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Author: Admin | 2025-04-28
Coinbase. When you make a deposit, these exchanges act as a custodian and hold crypto assets on your behalf. As a result, you’re trusting that the custodian keeps your assets safe and secure.You can also hold crypto assets in your own wallet to avoid trusting a third party. For example, after purchasing a cryptocurrency on Coinbase, you can transfer it to your Coinbase Wallet. The wallet contains your private keys, so only you can transfer the assets.There are four types of wallets:Hot Wallets – Hot wallets are internet-connected wallets that make it easy to transfer assets in and out, but they’re also more vulnerable to remote attackers.Cold Wallets – Cold wallets are offline wallets that make it harder for remote attackers to gain access but also make it harder to execute legitimate transfers.Software Wallets – Software wallets are mobile or desktop applications that introduce a risk of attack from viruses or bugs.Hardware Wallets – Hardware wallets are crypto-specific hardware devices that store crypto away from any smartphone or computer.The best way to secure crypto assets is by storing them in a cold hardware wallet like Ledger. By holding assets on these devices, it’s impossible for attackers to remotely gain access or access it through a trojan or similar virus. Attackers would have to physically steal your hardware wallet and then crack your credentials to gain access.But, of course, it’s not always practical to hold all your crypto assets in a cold hardware wallet. For example, you may be an active trader that needs to transfer or convert assets quickly. Or you may want to take advantage of decentralized finance (DeFi) protocols to earn income.Choosing Reputable ServicesMany crypto losses occur when a crypto exchange or protocol mismanages funds or experiences a hack. As a result, choosing a reputable partner is essential
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