Additional Information
- A crypto hot wallet is a digital wallet connected to the internet, used for storing, sending, and receiving cryptocurrencies like Bitcoin or Solana. They offer convenience for quick transactions but are more vulnerable to hacking and cyber attacks compared to offline cold wallets. Examples include mobile apps, browser extensions, or exchange-based wallets.
- A crypto cold wallet is a digital wallet that stores cryptocurrencies offline, typically on a physical device like a USB drive or a specialized hardware wallet, disconnected from the internet. This isolation makes cold wallets highly secure against hacking and cyberattacks but less convenient for frequent transactions. Examples include hardware wallets like Ledger or Trezor and paper wallets with printed private keys.
- A decentralized crypto exchange (DEX) is a platform that facilitates peer-to-peer cryptocurrency trading without a central authority, using blockchain technology and smart contracts to execute trades. Users retain control of their funds through their wallets, enhancing security and privacy compared to centralized exchanges.
- A centralized crypto exchange (CEX) is a platform operated by a central authority that facilitates the buying, selling, and trading of cryptocurrencies, acting as an intermediary between users. Users deposit funds into the exchange's custodial wallets, which enables fast transactions but exposes.
- Crypto staking involves locking up cryptocurrencies in a blockchain network to support its operations, such as validating transactions in a proof-of-stake (PoS) system, in exchange for earning rewards or interest. Users typically stake their coins through a wallet or platform, contributing to network security and decentralization while receiving periodic payouts.
- On Solana, network tokens like SOL are the native cryptocurrency used to pay for transaction fees and interact with the blockchain, ensuring its security and operations. Utility tokens, built on Solana’s platform, are custom tokens created for specific purposes within decentralized applications (dApps), such as governance, payments, or accessing services. These tokens leverage Solana’s high-speed, low-cost infrastructure to enable efficient functionality within their respective ecosystems.