Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong.
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Forbes Advisor has provided this content for educational reasons only and not to help you decide whether or not to invest in cryptocurrency. Should you decide to invest in cryptocurrency or in any other investment, you should always obtain appropriate financial advice and only invest what you can afford to lose.
With a global user base numbering more than 290 million investors, cryptocurrency is now more popular than ever. But, once their crypto has been purchased, investors will require a safe place to store the digital ‘keys’ – an encrypted string of characters which secure the asset. And this is the purpose of a crypto wallet.
Crypto wallets come in two main flavours: hot wallets and cold wallets. Hot wallets are connected to the internet. They can be available as a standalone product (known as a ‘software wallet’) or as a service offered by a crypto exchange (known as a ‘custodian’ wallet). For the purposes of this guide, we are looking solely at custodian wallets – hot wallets offered by exchanges.
