Hot wallet, cold wallet, hardware wallet, custodial — every crypto beginner needs to understand these 4 types. Your security depends on choosing right.
CoinDCX, WazirX, Binance — these are custodial: the exchange holds your keys. Easy to use, insured in some cases. Risk: exchange can freeze your account, get hacked, or collapse (FTX, Celsius). Store only what you're actively trading.
MetaMask, Phantom, Trust Wallet — non-custodial software wallets. You hold your keys. Much safer than exchanges. Risk: malware can extract keys from connected devices. Good for DeFi use and smaller amounts.
Ledger, Trezor — physical devices that store keys offline. Private key never touches the internet. Physical button confirmation required for every transaction. Best for holdings above ₹1–2 lakh. Only downside: costs ₹15–22K.
Use all three: exchange for buying/selling, software wallet for DeFi, hardware wallet for long-term storage. The rule: never store more than you can afford to lose on a hot wallet or exchange. Hardware wallet = your vault.
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