Whether you are trading Dogecoin, using Dogecoin or hoarding Dogecoin, it is necessary to have a Dogecoin wallet. There are many options for Dogecoin wallets. Which one is the most suitable depends on your purpose of use.
Generally speaking, there are two major categories of wallets. Depending on whether you are the sole owner of the wallet password, they can be divided into custodial wallets and non-custodial wallets. In addition, they can also be divided into hot wallets and cold wallets based on whether they are connected to the Internet.
Custodial wallets and non-custodial wallets
Custodial wallets
It refers to a wallet where you do not hold the private key. "Custody" means that a trusted entity other than you holds your coins and private keys on your behalf. Some online trading wallets are custodial wallets.
Custody wallets are more convenient to use and are popular with people who trade Dogecoin frequently.
Non-custodial wallets
A wallet where you hold and control your Dogecoin private keys. Many mobile wallets, Dogecoin Core Wallets, and hardware wallets are non-custodial wallets. The private keys of non-custodial wallets are stored locally on your computer, rather than by a third party. This is why many people prefer non-custodial wallets, believing that *"Your Dogecoin is only truly your Dogecoin if you have the private key"*.
People who use non-custodial wallets should be especially careful not to lose their private keys or mnemonics. This is very important! You can avoid this by backing up your non-custodial wallets, and be careful not to reveal your private keys or mnemonics to anyone you don't trust.
Hot Wallets and Cold Wallets
Hot Wallets
Are wallets that are connected to the Internet, such as the Dogecoin Core Wallet, browser extension wallets such as MetaMask, mobile wallets, etc. Hot wallets can be either custodial wallets or non-custodial wallets.
Cold Wallets
Are wallets that are not connected to the Internet, such as hardware wallets and paper wallets. Many people believe that cold wallets are safer than hot wallets, especially long-term holders who care about the security of holding coins tend to prefer cold wallets.
But in fact, most people think that non-custodial hot wallets, such as mobile wallets, are also safe enough to be used for daily expenses and holding small amounts of Dogecoin.
You can use multiple wallets at the same time! The transfer fee between Dogecoin wallets is almost 0, so you can use different types of wallets for different purposes, such as using cold wallets such as hardware wallets to store large amounts of Dogecoin, and using custodial or non-custodial hot wallets for daily tips. It all depends on what you like.
