A cryptocurrency wallet is a tool for storing and managing digital assets, containing a public key (receiving address) and a private key (control over funds). Wallets don’t store coins directly but track transactions on the blockchain.
According to the storage pattern, it can be categorized into Cold Wallet and Hot Wallet:
- Cold wallet (e.g., hardware/paper wallets) is offline, highly secure against hacking, and ideal for long-term storage of large holdings, but less convenient for frequent transactions.
- Hot wallet (e.g., exchange or mobile wallets) is online, convenient for daily use, but vulnerable to cyber threats.
According to the authorization mechanism, it can be divided into Single-Sig and Multi-Sig Wallet:
- Single-signature wallets require only one private key to send funds, offering simplicity but risking permanent loss if the key is compromised.
- Multi-signature wallets demand multiple private keys (e.g., 2 out of 3) to approve transactions, enhancing security for organizations or shared accounts.*
CoinEx Vault provides secure and professional cryptocurrency management services for both individual and corporate users by combining a cold wallet in the app and a multi-signature wallet on the website.