What is an external wallet?

All wallets that are not managed by LiteBit are called external wallets.

At LiteBit, you can store cryptos in a central location: the LiteBit wallet. You can also transfer cryptos to another wallet, an external wallet. This wallet must always be a wallet you have access to. If a third party provides the wallet service, you must have ownership over that wallet. The most prominent example is an account on an exchange. 

It is possible to send crypto from your LiteBit wallet to your external wallet address that you have created yourself. There are several kind of wallets:

A third party

You can choose to save cryptos on an external website. These are websites that offer wallets (i.e. exchanges or other websites or apps where you can store your cryptos). If you store your cryptos with a third party, there is no need to download software and maintenance is automatically performed.

Self-managed wallets

A self-managed wallet is a wallet for which you manage the private keys yourself. A self-managed wallet can be downloaded or purchased in the form of a cold or physical wallet.

Mobile wallets

There are several apps that you can use to manage your crypto on your smartphone. The most used crypto apps are: Exodus, MetaMask, Trust Wallet and Coinbase Wallet. It is important that you are aware that you have these wallets under your own management and do not forget to store your private key in a safe place.

Browser extensions

The most used wallet at the moment is MetaMask. You can add the wallet to your browser as an extension and save your crypto. Also with MetaMask, you have the wallet under your own management and you must store the private keys in a safe place.

Cold wallet

A cold wallet is not connected to the internet. Although this wallet is not connected to the internet, it can still receive transactions. But there can only be outgoing transactions if the wallet is connected to the internet. These wallets can also exist as a Ledger in the form of a physical wallet.

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What is a LiteBit wallet?