Three Types Of Digital Wallets

A digital wallet also referred to as “e-Wallet” refers to, online service, or software program that permits one party to form electronic transactions with digital currency units for goods and services.

This will include purchasing items on-line with a computer or employing a smartphone to get something at a store.

Money is often deposited within the digital wallet before any transactions or, in other cases, a person’s checking account is often linked to the wallet.

Electronic digital wallet

Exchange Wallet :

bank model/credit institution (according to the size of credit deposit funds)

▪ Your digital currency is not stored in your exchange account. The numbers shown in your account on the exchange are just your accounting vouchers on the exchange. Your digital currency is kept in the private wallet address of the exchange owner. Similar to bank account numbers, money is not in your bank account. The money is kept in the bank’s warehouse.

Digital Currency Wallet :

payment instrument credit agency (according to the size of credit deposit funds)

▪️This type of wallet is not really a decentralized wallet. Although each wallet officially states that the user’s private key and mnemonic are not stored (but if the user’s private key is not stored, some functions are completely unavailable. The functions added by the wallet in order to achieve a better user experience need to call your private key Key completion. So this type of wallet keeps your private key, which is equivalent to keeping your funds)

Hardware Wallet :

truly decentralized wallet (suitable for custody of huge funds)

▪️Your digital currency and mnemonics/keys are stored entirely in your hardware. No one keeps your digital currency and mnemonics/keys (at your own risk of loss/damage of the hardware)

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