Polkadot is an open-source, blockchain-based cryptocurrency network that was launched in 2020. The market soon took notice of the cryptocurrency because it blew up. As a result, many people started investing in Polkadot, and it soon became one of the most popular cryptocurrencies. 

Polkadot is a unique cryptocurrency and is a league apart from the others. The reason is that it offers interoperability by allowing multiple blockchain networks to interact with each other. Let us look at the various ways you can store this unique currency.

1

What Is a Polkadot Wallet and How to Set It Up?

A Polkadot wallet is a platform (software or app) that allows people to store their DOT tokens. It functions similarly to regular wallets because it enables you to keep your currencies for future use.

Cryptocurrency wallets store the keys to the respective blockchain so that you can access your balance. This implies that you cannot access your crypto balance without a key and ensures no third party access it either.

To set up a Polkadot wallet, follow these steps:

  1. There are plenty of Polkadot wallets available in the market. Choose the one which you find the most comfortable to work with.
  2. Set up the account. You will have to answer a few questions once you furnish the required details and set up a security pin.
  3. Your account will be created soon. Deposit DOT tokens into your account to make it functional. After that, you can conduct as many transactions as you want.
2

The Difference Between Hot and Cold Wallets

If you are learning about the various kinds of cryptocurrency wallets available in the market, first and foremost, understand this. There are two kinds of wallets: hot wallets and cold wallets.

Hot wallet

These are wallets that are connected to the internet. As such, they are easy to hack into. But the internet connectivity also ensures smoother crypto transactions. Examples of hot wallets include phone wallets and desktop wallets.

Cold wallet

These are the wallets that are not connected to the internet. Since there is no internet connectivity, it is impossible to hack them. But without the internet, you won’t be able to make transactions.

So, you have to transfer your funds to a hot wallet to carry out a transaction. Because of it, cold wallets are a bit inconvenient to use. Hardware wallets are cold wallets.

3

Different Types of Polkadot Wallets Available

If you want to get a Polkadot wallet, there is no scarcity of options. There are many types of wallets available. You can choose the one that best suits your preferences. The different types of Polkadot Wallets are:

Digital wallet

Digital wallets are wallets that are accessible via mobiles, laptops and PCs. They come in the form of software or apps. All you need to do to use them is download them, and have a good internet connection. Some digital wallets don’t even need to be downloaded.

Popular digital wallets for Polkadot include Gemini, Kraken, CoinBase and Binance, among others. In addition, there is a Polkadot browser extension that you can use even without downloading.

Offline wallet

Offline wallets are wallets that are not connected to the internet. Another name for offline wallets is hardware wallets. These resemble pen drives because they are USB devices that need to be plugged in.

As long as they are not plugged into a machine, they are not connected to the internet. So, it is impossible to hack into offline wallets. Even when connected to a device, it is difficult to hack into these wallets. Popular offline wallets include Ledger, Parity Signer and SafePal.

Paper wallet

Paper wallets are physical wallets too, but they store all the information on a piece of paper. Paper wallet generators on the internet help you create your paper wallet. You can print them and keep them with you for future references. A paper wallet contains the keys and has QR codes to verify your transactions.

Once your keys are printed on your paper wallet, they are removed from the virtual network. So, if you lose your wallet, you will not be able to access your DOT anymore.

4

What's the Best Wallet for Safe Storage?

If you are looking for an answer to this question, you are greatly mistaken. No “best” wallet can keep your cryptocurrency safe. However, all crypto wallets offer a safe environment to store your cryptocurrency. 

But in the end, it is up to you to ensure the safety of your cryptocurrency. So, adopt safe practices to ensure the security of your cryptocurrency. This includes working on a secured network, not sharing your crypto details with others, etc. 

Since cryptocurrencies are entirely based in a virtual world, cautiousness is necessary. It is possible to hack into online resources. So make sure there is no carelessness on your part.

FAQ

What are Polkadot wallets?

Polkadot wallets are cryptocurrency wallets that allow you to store your DOT tokens. The wallet keeps the crypto keys that you need to access your Polkadot balance. 

What are the various types of Polkadot wallets?

There is a wide range of Polkadot wallets available in the market. These include hardware wallets, offline wallets, digital wallets or paper wallets.

Which is the best cryptocurrency wallet? 

This is a question that has a very subjective answer. Therefore, it is up to the users to designate a wallet as the “best”.  

How to set up a Polkadot wallet?

Once you have selected the Polkadot wallet you wish to employ, you must set up your account. Finishing the account setup requires answering some questions and setting up a security pin.

What are digital wallets?

Digital wallets are platforms or apps which allow you to store your cryptocurrency digitally. They have to be connected to the internet to work correctly.

Are cold wallets better than hot wallets?

Cold wallets are not connected to the internet, so they cannot be hacked. Although it might sound better, the lack of internet makes conducting transactions difficult.

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