Curriculum

Crypto Wallets

Wallets

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Wallet Security

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Rabby.io

0/5

Exodus Wallet

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MetaMask.io

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Phantom SOL

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Proton Wallet

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Hardware Wallets

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Trezor Hardware Wallets

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Tangem Card Cold Wallets

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Video lesson

Best Crypto Wallets

Uncovering the Best Crypto Wallets: Ultimate Guide

Introduction to Wallets: The Crux of Crypto Security

How do you feel about keeping your money in a digital piggy bank? Sounds oddly comforting until you realize it could be hacked. While crypto wallets might not twinkle like your childhood toy, they play a monumental role in storing your cryptocurrency safely. In this lesson, we’ll explore the best crypto wallets of 2024, deciphering their intricacies and understanding what makes them tick. With the vast universe of financial technology having led us to cryptocurrencies, wallet safety is paramount as we venture further into this arena.

You can expect to emerge from this lesson with the ability to:

Identify the Types of Wallets: Learn about software, hardware, and MPC wallets to make informed decisions based on individual needs.
Understand Security Measures: Grasp the significance of private keys and seed phrases and their critical role in wallet safety.
Compare Wallet Options: Analyze various popular wallets, their features, and the cryptocurrencies they support.
Utilize Wallets Effectively: Explore how to use and manage multiple wallets without jeopardizing security.

Finding Fame in Functionality: Wallets of the Crypto World

Crypto wallets can be broken down into three major categories: software wallets, hardware wallets, and multi-party computation (MPC) wallets. Each type has distinct features, benefits, and drawbacks. James from MoneyZG elaborates on each category as he stresses the importance of how private keys are generated and stored: “whichever wallet that you use, it will generate the wallet for you… because you own the private key.”

Key Points Include:

Software Wallets: Easy to download on devices, these wallets store private keys on the device itself.
Hardware Wallets: Physical devices that safely store your private key offline, making them less vulnerable to hacks.
MPC Wallets: Clever structures that split private keys across multiple locations, adding a layer of abstraction to wallet recovery.

This strong emphasis reveals a critical thesis: the method of storing private keys shapes the overall security and usability of a wallet, guiding users towards assessing which solutions resonate best with their needs.

Step-by-Step Guide to Choosing Your Wallet

Identify Your Needs: Understand what you want from a wallet—ease of access, enhanced security, or a balance between the two.
Evaluate Different Wallet Types:
- Software wallets: Free and easier to use.
- Hardware wallets: Require an investment for higher security.
- MPC wallets: Offer a balance of both but require account connectivity.
Test Software Wallet Features: Before committing, explore established wallets like Coinbase, Trust Wallet, and Metamask, focusing on their support for various cryptocurrencies.
Assess Hardware Wallets: Popular models are Ledger and Trezor, which offer secure storage but differ in features and coin support.
Experiment with MPC Options: Test wallets offered by exchanges like Binance before committing to one, keeping in mind your willingness to share account details.

The essence of this accessible guide maps out a structured approach toward selecting a wallet based on personal circumstances.

Deeper Analysis: The Nuances of Security and Usability

In examining the core messages related to wallet security, several compelling points emerge that underline the nature of crypto wallets:

Private Key Ownership: The message underscores that true ownership of cryptocurrency lies with the private key: “if we own that private key, we own the wallet.” Users must comprehend that the wallet software merely facilitates access, while genuine control is rooted in key management.
Security Paradigms: The security contrasts between wallets reveal significant insights. Hardware wallets maintain an edge over software wallets because they store private keys offline, indicating the importance of proximity to the internet in dictating security levels.
Convenience vs. Autonomy: While MPC wallets promise ease of use via account connections, the reliance on cloud storage for private keys can compromise self-sovereignty. As James points out regarding MPC wallets: “it does require a login at the wallet provider,” raising an essential debate about who controls access.

Potential Weaknesses:

Despite their benefits, reliance on specific wallet forms has its downsides.
Software wallets may suffer from security flaws, while hardware wallets present logistical challenges due to physical attributes.
Ultimately, it is crucial for you to carefully weigh your priorities against potential vulnerabilities.

Connections to Blockchain and Crypto Ecosystem

Locked behind every crypto wallet are the principles of decentralization inherent in the very fabric of blockchain technology. Software wallets, by design, can easily interface with dApps, thus enabling users to tap into decentralized finance (DeFi) opportunities seamlessly. The trendy Manhattan-like skyline of DeFi projects reflects emerging possibilities, yet stark risks persist.

Take, for instance, the symbiotic relationship between DeFi services and MPC wallets. By allowing assets to be securely managed across multiple platforms, MPC wallets embody the marriage of security and accessibility—imperative in today’s fast-paced crypto market. Additionally, innovations around seed phrase management, such as Tandrum’s use of NFC-enabled cards, show how blockchain’s decentralization elements can inspire imaginative solutions.

Wider Outlook and Impact

The conversation around crypto wallets paves the way for broader implications regarding the future of finance. With increasing volatility and innovations within the crypto sector, understanding these wallet dynamics will equip investors and users to navigate emerging trends effectively. As the financial landscape evolves, so will wallet technology—adapting to integrate features like biometric security or advanced multi-signature transactions.

Societal impacts also unfold as digital currency correlations swell. With cryptocurrencies on the rise, security and user autonomy become pivotal elements in shaping public trust. Gears within this framework may lead to the emergence of novel ways to protect and utilize cryptocurrencies without sacrificing control.

Future Developments: As technology matures, wallets may evolve to incorporate advanced encryption methods, further decentralizing user control. The opportunities are limitless, particularly within the context of regulatory frameworks and their implications on wallet management. Advocates for blockchain maintain a watchful eye on potential shifts that drive user adoption and financial inclusivity.

Personal Commentary and Insights

Reflecting upon my journey through the world of cryptocurrencies, I have encountered a recurring theme: the balance between security and usability is a delicate dance. In navigating this space, I’ve drawn parallels with old-fashioned saving accounts—a vault holding your financial treasures, yet always in the balance of accessibility. Choosing a wallet isn’t simply a task; it’s enabling a personal strategy toward digital finance.

Through my explorations, it’s become evident that ongoing education about wallets’ structural nuances arms users for the future. Whether you’re safeguarding your assets with a hardware wallet or exploring the cutting-edge potential of MPC solutions, every decision is invaluable.

Conclusion

As our exploration of crypto wallets draws to a close, remember that your choice speaks volumes toward embracing the future of finance. Identifying the right wallet—be it software, hardware, or MPC—serves not just as a safeguard but as an enabler in your crypto journey. The potential for transformation within the cryptocurrency landscape remains sizeable, inviting you to participate actively in this exciting revolution.

With that, let’s segue into the next segment of this informative journey in the Crypto Is FIRE (CFIRE) training program, where further insights await!

Quotes:

“Whichever wallet that you use, it will generate the wallet for you… because you own the private key.”
“If we own that private key, we own the wallet.”
“It does require a login at the wallet provider.”

Continue to Next Lesson

Choosing the Right Crypto Wallet

Understanding how to safeguard your cryptocurrency is essential in this digital age, where the financial landscape is becoming increasingly decentralized. As cryptocurrencies soar in popularity, selecting the right wallet to store your digital assets safely is paramount. This guide delves into the distinct types of crypto wallets available, their functionality, and how they contribute to the broader cryptocurrency ecosystem, fitting seamlessly into the Crypto Is FIRE (CFIRE) training program.

The topic of wallets is crucial not only in the cryptocurrency space but also when looking at traditional finance’s evolving relationship with digital currencies. With the correct knowledge about wallets, newcomers can make informed decisions while navigating their crypto journey.

Core Concepts

Wallet Types
- Software Wallets: Digital wallets that store private keys on devices and can be accessed via applications. They are free but may be more vulnerable to hacks.
- Hardware Wallets: Physical devices that securely store private keys offline, ensuring higher security. They typically cost between $30 and $80.
- MPC Wallets (Multi-Party Computation Wallets): A newer form of wallet that splits the private key into different shares stored on multiple devices or platforms, adding an extra layer of security.
Private Key
The cryptographic key that enables the owner to spend and manage cryptocurrency. It’s akin to a password—owning it means you have full control over your assets. In the crypto realm, if your private key is compromised, so is your wallet.
Seed Phrase
A series of 12 to 24 words that can restore your wallet on any device. Think of it as the master key that unlocks your vault, making it imperative to safeguard.
Public Address
Similar to an email address, it is the identifier for receiving cryptocurrencies. For example, when someone wants to send you Bitcoin, they need your public address.
Centralized vs. Decentralized Storage
- Centralized Storage: Like traditional banks, where the institution controls your assets.
- Decentralized Storage: Where you hold the keys and manage your assets independently, exemplifying the essence of cryptocurrencies.
Key Management
The practice of securing and managing your private keys. This includes understanding how and where to store your keys to prevent unauthorized access.

Understanding these concepts equips newcomers with foundational knowledge crucial for navigating both traditional finance and cryptocurrency investments.

Key Steps in Selecting a Wallet

1. Identify Your Needs

Determine Purpose:
- Are you trading frequently or holding long-term?
- Will you need to interact with decentralized applications (dApps)?
Consider Compatibility:
- Check if the wallet supports the cryptocurrencies you intend to invest in.

2. Evaluate Wallet Types

Software Wallets:
- Ideal for ease of access and regular trading.
- Need to be cautious about security, as they are online.
Hardware Wallets:
- Best for long-term holding and avoiding hacks.
- Ensure to buy from reputable vendors.
MPC Wallets:
- The right blend of security without needing to manage a seed phrase manually.

3. Research Providers

Reputation and Reviews:
- Look for established brands with positive user feedback.
Customer Support:
- A responsive support team can assist if issues arise.

4. Understand Security Measures

Recovery Options:
- Check how easy/hard it is to recover your assets if you lose access.
Backup Procedures:
- Know how to securely back up your seed phrase and private keys.

5. Experiment

Use Multiple Wallets:
- Diversifying wallets allows for a mix of security and convenience.

6. Stay Informed

Market Trends:
- Keep up with new wallet technologies and security tips.

Understanding these steps is indispensable when it comes to protecting your digital assets effectively, especially as the portfolio of cryptocurrencies expands.

A Blockchain Perspective

Crypto Connection

In understanding wallet types, a notable difference in the crypto world is how private keys are stored. For example, hardware wallets create and store private keys offline, unlike software wallets that do so online. This proactive separation from the internet significantly lowers hack risks and aligns with traditional finance’s need for secure asset management.

Examples

While specific charts or graphs weren’t mentioned, they could effectively illustrate wallet types, their security levels, and relative costs. For instance:

Use Case: Two individuals each store 1 Bitcoin. One uses a software wallet and experiences a hack leading to loss. The other safely stores their Bitcoin in a hardware wallet, exemplifying risk management effectively.
MPC Wallet Scenario: A user splits their private key into different shares across devices, allowing them to authorize transactions securely without revealing the entire key.

Real-World Applications

Historically, several incidents in both crypto and traditional asset management demonstrate the need for secure storage solutions. Hacks of exchanges like Mt. Gox show traditional financial vulnerabilities echoed in the crypto realm. Accordingly, selecting the right wallet becomes essential to manage and protect digital assets.

Cause and Effect Relationships

When choosing wallet storage solutions, there is a direct effect on security levels. For instance, using a software wallet connected to the internet increases exposure to potential hacks. In contrast, opting for a hardware wallet directly correlates with enhanced security.

Challenges and Solutions

While security remains a pressing challenge in both traditional finance and crypto, innovations like MPC wallets offer solutions. They mitigate risks associated with private key management by distributing control.

Common misconceptions among newcomers often stem from confusion over how to manage security effectively. Understanding that not all wallets provide equal safety allows users to make better choices that align with their individual needs.

Key Takeaways

Wallet Ownership: Always own your private keys; without them, you don’t truly own your assets.
Diversity Matters: Consider using multiple wallets for different purposes—trading versus long-term holding.
Prioritize Security: Hardware wallets offer the best offline security.
Stay Educated: Knowledge about wallet types and features will help protect your investments.
Backup Creation: Always create secure backups of your seed phrases and private keys.

Actionably, newcomers should consider starting with a small investment in cryptocurrencies, using a hardware wallet for long-term holdings, while experimenting with software wallets for more frequent trades.

Discussion Questions and Scenarios

Compare the security features of hardware wallets versus software wallets. Which would you choose and why?
Imagine losing your seed phrase; what steps would you take in attempting to recover your assets?
How do decentralized and centralized storage solutions align with your financial philosophy?
Consider a scenario where a new wallet competitor emerges with unique features. How would you assess its viability against established brands?
If you were to advise a friend about their first crypto wallet choice, what criteria would you suggest they focus on?

Glossary

Wallet: A digital tool that allows you to store, send, and receive cryptocurrencies.
Private Key: The cryptographic key necessary for spending your cryptocurrency.
Seed Phrase: A series of mnemonic words that allow for wallet recovery.
Public Address: Your unique identifier in the blockchain network for receiving cryptocurrencies.
MPC Wallet: A wallet technology that divides the private key into shares for enhanced security.

Selecting the right crypto wallet is an essential part of engaging with cryptocurrencies wisely and securely. Each type of wallet has its benefits, allowing users to choose what fits their needs best while ensuring that their assets remain safe.

Continue to Next Lesson

Congratulations on completing this lesson on crypto wallets. Don’t stop now! Continue to the next lesson in the Crypto Is FIRE (CFIRE) training program to deepen your understanding of the intricacies of cryptocurrency management.

Read Video Transcript

Best Crypto Wallets 2024!! (Mobile, Hardware, MPC)

https://www.youtube.com/watch?v=Isk9qoK62o8

Transcript:

In this video, we’ll look at the best crypto wallets we can use to store our crypto safely. There are three major types of wallets which we’ll go through. Also, there are many different brands that offer these, so we’ll go through all of the different options and the coins that they support and the different user experiences that they have, because they are very different.

I’ll leave timestamps for everything down in the description. I’ll also leave links below to all of the wallets websites and other info pages so you can dig a bit deeper. But what we need to do is choose what type of wallet is best for us. There are three major types of wallets as you can see here. You have software wallets.

These are just free to download on your device, never cost anything. There are hardware wallets which will cost you a little bit of money, maybe $30 to $80 these are like small usb sticks or other specific devices and then you have npc wallets known as multi-party computation wallets these are a type of hot wallet but the differences between all of these is how they generate and store the private key of the wallet the private key is the thing that you need to spend coins out of the wallet and so if we own that private key, we own the wallet.

It’s the most important thing in crypto. And so how it’s generated and stored is the important thing that we need to understand. And then we can choose which type we want to actually use. So the private key is actually stored and created differently depending on the device. actually stored and created differently depending on the device.

And of course, software wallets on your phone may be slightly less secure than a hardware wallet, which has the private key offline. And then MPC is something different altogether, which I’ll explain in a second. So let’s go through how a wallet is created to know that actually it doesn’t matter which application that you use.

It just matters that you own the wallet and the private key of the wallet. So whichever wallet that you use, it will generate the wallet for you. So these are just applications. The wallet is on the blockchain. These applications don’t create or own the wallet at all for you.

That’s yours because you own the private key. When you create the wallet what happens is you get your wallet address which is like an email address that’s where people can send you coins and then you get the private key. Now this is the important thing because you own this and therefore you have the ability to spend coins out of the wallet.

You can think of this maybe like a password so if you own the password you have access to the wallet. But if someone else has the password, they also have access to your wallet. So it’s really important to keep this safe and out of the hands of hackers or anyone else. The third thing we get is a seed phrase. You can think of this like a master key.

So if you have the seed phrase, which is usually 12 to 24 words, you can reload your wallet on any other device and any other application. So it doesn’t matter if you have a trust wallet and then one day you want to switch to an OKEx wallet, you don’t have to create a new wallet. You can just use your seed phrase to reload the wallet that you have on a different application.

So how the private key is stored and held is very very important. How this seed phrase is stored and held is very very important. So that’s the difference between these wallets. So let’s go back to software. These create your private key on your phone or your desktop and they keep it there.

So obviously it’s connected to the internet at all times, potentially open to more hacks or viruses. Hardware wallets generate your private key offline and keep it on the device at all times. Therefore it cannot be hacked because it’s not connected to the internet. There we have MPC. Now what this does is actually take the private key and it splits it up into three different shares.

You have one on your device, you have one on your cloud account, and you have one on the wallet provider’s account. Now these private keys are encrypted and so no one actually knows what the private key is. But when you put two of them together, you can essentially sign a transaction and spend money out of the wallet. Which one is the best and safest? I have this right here so you can see.

I’ll just get myself out of the way as well. Software wallets have the private key on the device, which is unsafe potentially. They also give you a seed phrase of 12 to 24 words which you have to write down specifically. That means you have to keep it in a notebook or a piece of paper or something like that.

Then the seed phrase is free of course because it’s a software wallet that you download for free. This is private, nobody knows what you’re doing as long as you keep everything in your own way. Then we have hardware wallets. The private key is generated and stored offline because it’s on that wallet. The seed phrase that they give you, 12 to 24 words, you just have to write that down on a notepad.

So potentially that’s an issue. And of course, it costs money to buy these. This is private because you don’t have any digital signature however the wallet provider that you buy from is going to have your name and address and so if they get hacked you may actually you know receive some phishing attempts or anything like that. MPC is different.

What happens to the private key is that they split the private key up three ways. They encrypt it and no one actually knows what the private key is. But as long as two of the stores come together, either from your phone or the wallet provider or your iCloud, you can sign transactions, spend coins, and then you can reload the wallet by putting two of the pieces together again.

The seed phrase is encrypted and split up. The seed phrase, as you can see here, this is free. You don’t pay for these wallets. The only downside here is that it does require a login at the wallet provider. You don’t need any info here apart from an email address, so you can use a separate email address.

There’s no personal information given, but it does require a login. So just to be sure there. Which one is the best? Definitely hardware wallets are great if you want full self-sovereignty and no digital signature. Software wallets are free and easy to use, but you might as well use an MPC wallet if you’re looking for a software wallet, because these are just slightly safer in the way that they store the seed phrase.

Now let’s look at the most popular software wallets in crypto. So we have some big brands here. This is Coinbase’s wallet. You also have Trust Wallet, which is Binance’s wallet, although it’s a separate brand, but it’s under the Binance umbrella. You have Exodus Wallet right here, which is also fantastic. You have Metamask and you have Rabi.

You can see the supported coins right here. So Trust and Exodus have great support for Coinbase wallet. There’s a few coins or blockchains that just aren’t supported. And for these two, these are DeFi type wallets. And so they only support Ethereum and Ethereum chains. So the HotWallet can create its own wallet for you, but it can also act as a way of interfacing with dApps and you can link up your hardware wallet with that.

The way you do that is plug your hardware wallet into the computer, link the application and then use the hardware wallet to sign your transactions. So you can see that right here. You can use them as interfaces or you can use them as standalone wallets. So let’s have a look at a few of them. This is Trust Wallet right here. Very simple.

You have multi-chain or multi-coin support down at the bottom, Bitcoin, BNB, Ethereum. You can swap cross-chain. So if you have some assets on one chain, you can swap them. That’s on DeFi chains if they support that. You also have these browser tabs where you can use applications if you want to do that.

So if we can see Coinbase wallet right here, links very well with the Coinbase exchange. You can see NFTs, you can see all of your different coins across the chains that are supported, and you can send them in and out of the wallet. You have swap features in most of these wallets as well, but again, that’s gonna be dependent on the chain that you’re using.

So that’s too much for this video. This is Trust Wallet right here, very good coin support. You’ve just seen that as well. As I said, Binance is application. Exodus is third party. So they’re not an exchange or a big provider, but they concentrate fully on, you know, providing the Exodus wallet and 50 plus networks are supported.

And they use the Exodus across mobile or desktop as well. It’s a great wallet to use. It has very, very good support for a lot of different chains and you can use hardware wallets with this as well. So you can use the hardware wallet to store your crypto, but because Exodus is such a good application, you can use the app to actually interact with dApps or other things.

So it’s very good to use. Then we have Metamask here. Like I said, EVM only. This was developed for Ethereum. Best on browser. And then you have Rabi, which is a kind of newcomer. It’s very highly used by a lot of DeFi users because it’s easy to use and looks great. And it has a lot of features that DeFi users want.

So in terms of hot wallets, these are the major ones. But like I said, you don’t have to stick to one wallet. As long as you have your wallet seed phrase, then you can reload it into any of these applications and use the one that best suits you.

You can even use two or three at the same time because your seed phrase or your private key is in the wallet. You can load it in there and use them. So these are great to use. These are the most popular ones within crypto. Now let’s come to the most popular hardware wallets in crypto. Ledger and Trezor are definitely the most popular. These two right here. Ledger has had some bad press recently.

They made some product decisions that people didn’t like. And also their code is closed source, although they have committed to making it open source. Trezor has been open source the whole way. Now they have a few different devices that you can look at this is trezors right here so they have the model t and they have the trezor save 3.

now some differences here would be in the supported coins or the design of the device this one has a touch screen this one doesn’t and you can see some of the other features that they have so you can go through that in your own time. I’ll leave links to all of these below. But essentially what they do is have a secure chip. They generate the private key on that and then that’s it.

Every time you want to use this, you have to plug it in to the device that you want to use. Now, these will have their own applications as well, because if you want to send a transaction, you have to obviously see the application to do that. So they have their own apps, but what you can also do is actually link your hardware wallet with these software wallets as well and just use your hardware wallet through these.

So you can really just mix and choose whichever you want. In terms of Ledger, they have three devices and you can see most of them are very similar in the coins and the blockchains that are supported, but you just have some different features here so this one has a larger screen this one is a bit smaller and the ledger nano x has bluetooth if you want to connect it to your phones a little bit easier so i’ll leave links below to some specific comparisons but those are very popular hardware wallets that

most people use ledger and trezor have been around a long time but there are many other types of wallet providers these days just with some different use cases so you can see tangent down here and keystone wallet right here these are slightly different devices so let’s have a look at that for tangent what they actually do is generate your seed phrase and your private key but instead of making you write it down on a piece of paper or buying a steel sheet to etch in the seed phrase, what Tandrum do is just store the seed phrase on three

different cards. And these are like credit card devices. So you never actually see your seed phrase. You don’t know what it is. You don’t write it down. As long as you have one of the cards, you can use the wallet. And if you have the cards and you lose the others, you can buy new cards and then just make sure you have one card because as long as you have one card with a seed phrase, you can then share it to the other cards.

So you never write down or store a seed phrase and you have the card that you link with your phone. You use NFC to set it up. Once you set one up, you can then obviously set up multiple other cards and share that seed phrase among the other cards.

But of course, if someone has this card, they won’t be able to access the wallet because it’s set up with your device and a pin number that you create. So they wouldn’t be able to use the card in any way. It has to be with the pin number that you set up when you create the cards.

So this is trying to eliminate the seed phrase issue with writing it down and just having it a little bit of a more ergonomic form factor for these. The way that you use the wallet is through the application and you can link this with other software wallets via scanning QR codes and so you can pretty much use any software wallet that you want but you need the card with your phone to sign the transactions. Then you have something like Keystone which is fully open source again this is more like a hardware device and how you link this with wallets is by using the camera on here so because this is open source many people use this you can see they have very good links link ups with bitcoin wallets and evm wallets

right here okx metamask all you do is just open the Metamask wallet and say that you want to link the Keystone and just scan the QR code. You can use Keystone standalone as well. It is open source and it has three secure element chips and a fingerprint scanner as well. So if you have three different users here, you can log three different fingerprint scans and each one would open their own respective wallet.

So if you have a family or multiple people you just buy the Keystone. So there are many different ways to go around the hardware route and you know these are really the most popular for most users right now. The main two MPC wallet providers as of making this video are Binance and OKEx. TrustWallet will be making an MPC wallet as well that That should be coming out sometime soon.

But the way that you get these wallets is by having an exchange account. And then up at the top, you can see Web3. So if you click that, it just automatically creates a Web3 wallet for you. So you have an address and your private key, like I said, is split up three ways. And you have one share on your iCloud if you need to recover all you need to remember is a pin number or a password that you create when setting up the app and you have access to many different coins right here you can also scan using the QR code scanner to you know link

to applications there’s also a discover tab where you can search for any application that you want to use and store your coins so this way doesn’t have any seed phrase issues, but it is linked to your account. And that may not be great for some people who want full self-sovereignty and don’t wanna link them up.

So there are many different options with wallets on how to store your private key or seed phrase, and that’s up to the individual user. I’ll leave links to everything and other information I mentioned in this video down below. I’m James, this is MoneyZG, cheers for watching and I’ll see you in the next one.