The secret of the most popular cryptocurrency hot wallet in 2023

Isn’t it possible to place cryptocurrencies directly on exchanges?

Most people get cryptocurrencies from an exchange for the first time. As long as they register an account and complete identity verification, they can withdraw, deposit and trade cryptocurrencies at any time. Functionally, it is simply a one-stop wallet. , then why go out of your way to get an extra wallet?

Although it is more convenient to host the currency on the exchange, there are several important reasons why we must use an independent wallet:

• To interact with smart contracts, such as using DeFi applications For lending, staking, liquidity mining, etc., exchanges usually do not support
• investment projects that require on-chain interaction to receive airdrops, or investment projects that require coins to participate. Direct coins from the exchange will not receive airdrops. Coins or NFT
• Exchanges may not support all currencies. For example, some privacy coins, meme coins, and coins with smaller market capitalization cannot be placed on the exchange.
• Coins placed on the exchange are not You can definitely get it out at any time, the exchange has the right to seize all your coins

The fourth point is easily overlooked by many people but is very important. Especially after the 2022 incident in which FTX exchange misappropriated customer assets and led to its collapse, people began to realize that it was not safe to store cryptocurrencies in exchanges (custodial wallets). Once the exchange goes bankrupt, the assets cannot be recovered. Therefore, unless you need to make a transaction, it is safer and more reliable to keep your coins in a wallet you control (a non-custodial wallet).

Introduction to mainstream cryptocurrency wallets

Non-custodial cryptocurrency wallets are mainly divided into two types: software wallets (hot wallets) and hardware wallets (cold wallets). Software wallets are suitable for daily transactions, while hardware wallets are more suitable for long-term currency hoarding. This article will focus on hot wallets and select currently popular wallets for discussion in order to choose the most appropriate wallet in different application scenarios.

The basic functions of the wallet include sending, receiving cryptocurrency and displaying the number of coins. When choosing a wallet, you should pay attention to additional features such as transaction tracking and multi-currency support.

• Supported blockchain network types and whether it can be customized
• Computer and mobile platform support level
• Backup and recovery wallet function
• How to interact with decentralized applications (DApps)
• Whether there is built-in currency trading and fiat currency buying functions
• The degree of support for NFT

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