Where is Cryptocurrency Stored?
Hot Wallets
Hot wallets are software wallets that are connected to the internet. This means that they are more convenient to use than cold wallets, but they are also more vulnerable to hacking.
Cold Wallets
Cold wallets are hardware wallets that are not connected to the internet. This makes them much more secure than hot wallets, but they are also more inconvenient to use. Hardware wallets usually require a PIN to use.
Online Exchanges
Online exchanges are websites that allow users to buy, sell, and trade cryptocurrencies. Some exchanges also offer wallet services for users to store their cryptocurrencies but should not be used long term due to the numerous exchange hacks that take place.
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