I’m relatively new to the world of cryptocurrency and have recently purchased some crypto from an exchange. While I feel confident about the buying process, I know there’s a lot I need to understand about storing my newly acquired digital assets. I’ve read that leaving my crypto on the exchange might not be the safest option as exchanges are prone to hacks. But where should I keep it then?
I’ve come across terms like ‘wallets’ and ‘private keys’ in my research, but it’s all a bit confusing. Are these digital wallets similar to my physical wallet where I keep my traditional currency? And how does one handle private keys? Are they like passwords that we use for online banking? I would really appreciate some insight into these concepts.
Moreover, I’ve also heard of hardware and software wallets, which is even more perplexing. Are these two different types of digital wallets? If they are, what makes one better or safer than the other? I would appreciate any help to comprehend the intricacies of storing cryptocurrency. It would be beneficial not just for me, but probably for other new crypto users across the forum too. Any information or advice you could provide would be really appreciated, especially ways to protect my investment.