Overview of Local Wallet, Hardware Wallet, or Cold Wallet
What is a cold wallet?
A cold wallet refers to cryptocurrency wallets that store private keys offline, effectively isolating them from online threats such as malware or spyware. These wallets do not connect to the internet nor interact with any smart contracts, thus avoiding risks associated with digital vulnerabilities. Cold wallets are primarily used for sending and receiving digital assets securely.
How does a hardware wallet function as a cold wallet?
Hardware wallets, often used as a form of cold storage, are physical devices (like USB or Bluetooth devices) that secure cryptocurrency by storing private keys externally. They do not store the cryptocurrency itself but the keys that provide access to it. Examples of hardware wallets include Trezor and Ledger.
What is a local wallet?
Local wallets are digital wallets installed on a device such as a computer or smartphone. These wallets store private keys directly on the device, allowing users full control over their assets without the involvement of third parties. Local wallets are accessible only through the device on which they are installed, with popular examples being Exodus and Jaxx.
How to Add a Local Wallet, Hardware Wallet, or Cold Wallet to CoinTracker
Adding Your Wallet with xPub, yPub, zPub Keys
Extended public keys, known as xPub, yPub, and zPub, are used to track all transactions associated with Bitcoin and other similar cryptocurrencies. They allow services like CoinTracker to monitor wallet activity without exposing private keys.
To find your wallet's xPub key or equivalent you can refer to the instructions provided by your wallet manufacturer, such as this help article from Ledger. Then search CoinTracker for the wallet name or blockchain and add the xPub/yPub/zPub.
Learn more about xPub, yPub, zPub: Understanding xPub, yPub, zPub, and UTXO
How to add a wallet using a regular public address?
If your wallet does not support extended public keys (xPub), you can still add your wallet to tracking services by using the public address. Simply label transactions to and from non-supported wallets as "transfers" to keep your records accurate.
Learn more about adding a wallet to CoinTracker via public address:
What to do if your wallet does not support exporting xPub keys?
For wallets that do not allow the export of extended public keys, you could opt to use an open-source tool to generate these keys from your seed phrase, or your wallet's mnemonic phrase that some wallet's generate when you create a new wallet.