Exchanges are businesses that buy and sell crypto currencies. Opening an account usually involves providing proof of your identity. Most of the big exchanges are safe places to buy & sell crypto, and can transfer your native fiat currency from and to your bank account. Exchanges have a drawback in that there are plenty of people trying to hack them, as they have a lot of money. As such, keeping money there increases your risk.
Hot wallets are places to hold your crypto currency. They allow you to receive money, send money, and view your current balances. Usually installed on your computer, mobile phone, or a tablet, they are secure against hacking, but you have to be cautious that your devide is not stolen or hacked.
Paper wallets are a type of cold wallet. Printed out on paper they have your public address and your private key. These are some of the most secure forms of storage, as long as the paper is not lost or stolen.
There are also USB based cold wallets that are very secure.
Mycelium
There are many hot wallets available. My preference is Mycelium. It is available on Android and iPhone, and can hold Bitcoin and Ether.
As a dedicated prepper and single mother, I've found this article on crypto wallets incredibly enlightening, especially considering the burgeoning role that cryptocurrencies play in our world today. I certainly appreciate the detailed breakdown of exchange-based wallets, hot wallets, paper wallets, and USB-based cold wallets.
From a prepper's perspective, I'd like to highlight the importance of securing your assets, whether digital or physical. Just as I've equipped my 40-foot sloop with solar panels, a water desalination system, and ample storage for supplies, it's crucial to ensure your crypto assets are secure and accessible in any situation.
In my experience, a combination of hot wallets and cold wallets (like the paper or USB-based ones mentioned) could provide a balanced approach. Hot wallets can be used for day-to-day transactions while the bulk of assets can be stored in cold wallets for long-term safety. To draw a parallel to my boating life, it's akin to having a main sail for propulsion and an auxiliary engine for emergency situations.
Also, while paper wallets are described as secure (as long as the paper isn't lost or stolen), I'd advise fellow preppers to consider the potential risks in SHTF scenarios. Natural disasters, for instance, could potentially damage or destroy physical paper wallets. A sturdy, waterproof case could be a useful accessory in such situations.
The mention of Mycelium is also appreciated. I'll definitely be exploring it further. For other preppers reading this, I'd recommend taking the time to understand the technical aspects of these wallets and practice using them before a crisis hits. Bugging out with a sailboat or securing your digital assets, it's all about preparation and practical knowledge.
Thanks for this comprehensive guide. It's a valuable addition to any prepper's toolkit.
