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Everyone in this crypto space will at least know what a wallet is. For me I can define a wallet as a digital bank where all your crypto currency is being stored. Just as we have in reality a girl's handbag and a boy's wallet he generally carries in his pocket.
Most exchanges where crypto may be kept include seed phase or private keys. It generally includes 10-20 words depending. Even here on hive we have our password, active key, posting key, master key and more. They all serve specific purposes and if disclosed, the account might be accessed and all earnings lost.
Oftentimes individuals place their crypto holdings in only one single wallet. Yeah! It's their choice however there are certain consequences for doing so.
The fantastic part with wallets is that you ever become restricted in creating multiple wallets.
Trust wallet may open numerous wallets on simply a phone. Same with Metamask and others.When using multiple wallets i renamed it to make me remember what exact asset is in there and what it will be utilized for.
N/B: Not all exchanges of your crypto can be stored. You can notice several are folding up recently. Instead stay in a popular and highly trusted one.
It is suggested not to utilize your primary wallet to access airdrops or sites you are not convinced about.
Risk: The Crypto industry is risky and fraudsters are rising daily. To be on a safer time your crypto assets shouldn't be housed in one wallet or exchange.
Just in case one was hacked the rest are secure with you.
Technical Issues: Sometimes exchanges carry out maintenance on their wallets and during that period of time, their users have the inability to access them. Imagine if all your crypto assets are in one wallet and you need your cash urgently you will have to wait until the maintenance is finished.
Recovery Key Option: Since each wallet includes a private word. So having numerous wallets offers you different phrases too. So when you lose one wallet you have always recovered the rest because all your assets are not in one wallet.
It is suggested not to retain your private keys where it is readily accessible or on paper where it might be lost.
[This is not a financial Advise]
Thank you for reading
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Well, you're right, it's risky keeping all assets in a wallet
It's also wise to have your key phrases written out and saved securely
Sure in different places to be on safer place
Never put all your eggs in one basket i'll always say. Informative and great post
This is the right quote for this post
Thank you for this and for reading
Thank you for thanking me ☺️☺️
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Anything about Cryptocurrency is risky as the price is volatile.
Yeah that's why we should be careful ☺️