This article goes over what a crypto wallet is, how it functions, and how it interacts with blockchains.
Instead of holding assets like an actual wallet would hold cash, Crypto Wallets only represent the assets "stored" on the blockchain. The assets themselves such as $GALA and NFTs are stored on the blockchain, but the Private Key/Recovery Phrase is how a user may access and control them. These keys prove ownership over digital assets and grant permission to transfer them.
There are three main types of Crypto Wallets:
Online Wallet (Hot Wallet)
Private Keys or Recovery phrases are used by an application to prove ownership of assets and allow them to be transferred and manipulated conveniently online. Some of these include MetaMask and the Gala Games and Entertainment inventory interface. These wallets are convenient to access, but they may be less secure than alternatives such as Hardware Wallets.
Hardware Wallet (Cold Wallet)
Private Keys are stored in a physical, thumb-drive like devices such as Trezor or Ledger. Users have to physically interact with the device in order to complete a transaction. Meaning, the devices remains offline unless the user engages it. The key feature of such Crypto Wallets is the similarity to regular wallets, where the user has to have it in-hand in order to use the funds within it. This wallet is less convenient than an online wallet but can be more secure due to its offline nature.
Private keys are stored on a physical medium like a piece of paper and stored in a secure place. Which makes the process of using crypto a lot more difficult, ultimately sacrificing any type of convivence for the sake safety. Users can import their paper wallet into an online wallet if they choose.
A user can use one type of method to access their wallet, or a combination of all three.
Note: Gala Games and Entertainment does not store users' Private Keys and Seed Phrases as we believe people should own their assets. We urge users to please keep their wallet information safe and make sure to backup their Transfer Code and Recovery Phrase.
Gala Support highly recommends enabling 2FA for every account action to ensure an extra layer of security, unlike other traditional online wallets. Please see this article on how to set it up.