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1. Crypto Coins
The main difference between crytocurrencies is how they are produced. In general, a distinction is made between Proof-of-work (PoW) and Proof-of Stake (PoS). Proof-of-Work is based on crypto coin production by miners. A prominent example of this is Bitcoin. Proof-of-Stake crypto coins are generated by delegators.
Within Proof-of-Stake, a differentiation is made between Delegated Proof of Stake (DPoS) and Liquid Proof of Stake (LPoS). LPoS is the latest development hereby. One crypto coin using DPoS is Tron. Tezos is using the newest LPoS so-called consensus mechanism.
Digital currencies like Bitcoin and Tezos exist only as data on the Internet in the blockchain. This is important to understand. No access to digital money is possible without an Internet connection. Research is being conducted into offline solutions in all directions.
To have access to Tezos in the Blockchain a wallet, a script or a program based on an API or simply a computer program is needed. The GUI solution for accessing digital money is commonly called Wallet.
In principle crypto coins deal with 3 things. With respect to wallets there is a secret 12 word phrase to set up a wallet. Inside of a wallet it is common practice to deal with public keys as well as with private keys. The public key is the account number and the private key is the personal identification number. Sometimes secret 12 word phrase and private key are interchangeable.
Online Wallets
Online wallets are wallets in the Internet in the World Wide Web. This can be e.g. crypto stock exchanges be. There the user has often no control over his own private keys. They should only be used for temorary buying, selling and exchange of crypto coin. They are unsuitable for permanent storage.
Hot Wallets
Hot wallets are connected to the Internet. These wallets are available for all types of OS's and hardware. The software itself is locally installed. A good password protection makes them safe against simple theft.
Cold Wallets
Cold wallets are not connected to the Internet directly. They are hardware solutions in form of cold storage devices. A special case of a cold wallet is a paper wallet.