$1.28 billion in Ethereum was transferred from the Binance exchange to an anonymous cryptocurrency wallet

Tracking and analytics blockchain system Whale Alert detected a large transfer of 600,000 ETH from Binance to an anonymous wallet. At the time of the transaction, ETH was trading at $2072 per coin, so the transfer amount was $1.28 billion.

A crypto-journalist from China, Kolen Wu, suggests that such a large movement could be related to the problems that the Binance exchange has recently had with regulatory authorities in a number of countries.

In response, Twitter user @CloutedMind shared a screenshot from the Etherscan blockchain, demonstrating that the wallet has become the 15th largest ETH wallet after receiving 600,000 ETH from Binance.

According to the same user, the commission for this incredible transfer was only 63 cents. During the same period during the day, the Whale Alert service detected several more large transactions.

Many investors and traders continue to trade on centralized exchanges solely for the purpose of converting fiat money into cryptocurrencies, and then withdraw them to their wallets. This is the centralized nature of cryptocurrencies.

What is a crypto wallet and what types of crypto wallets exist?

A crypto wallet is a set of software and/or hardware methods that allow you to buy, sell and store cryptocurrencies. Crypto wallets are divided into several key groups. They differ in the method of storage, level of security, confidentiality, and availability. Just like cryptocurrencies, crypto wallets are based on blockchain technology.

There are several types of crypto wallets, which are divided into two main categories: hot and cold.

Hot wallets are so-called because they are always available online, and the user can access them at any time from anywhere in the world using only a username and password. Such wallets need access to the Internet since they require synchronization with the blockchain. The essence of hot storage methods is that the private keys of your wallet are stored on the servers of the service used. When using hot wallet types, it is recommended to enable additional account protection methods provided by the service, for example, two-step authentication (confirmation of account login and account transactions via SMS or a time code generated by a special application).

Cold wallets are designed for offline storage of cryptocurrency assets without an Internet connection. This type of wallet is significantly safer than hot wallets and is much less susceptible to hacking. You can replenish a cold wallet absolutely without hindrance, it is enough to know its address for this. However, to make a transaction, you will have to temporarily connect to the software wallet. This type of wallet is best suited for the long-term storage of cryptocurrencies.

The hot type of wallets include:

  • Web / online wallets and cryptocurrency exchanges.
  • Software wallets.

The cold type of wallets include:

  • Specialized hardware wallets.
  • Paper wallets and other analog carriers.

In addition, wallets are divided into regular and multi-currency. The latter allows you to store several different cryptocurrencies in one wallet.

Let’s look at different types of wallets in more detail.

Web / online wallets

This is the most common type of hot wallet. They are web applications that work online. Web wallets are very convenient to use. Users can access their accounts from any device that has Internet access. Cryptocurrency exchanges offer their users their own web wallets built into their platform. Online wallets have a significant drawback — the private key for accessing coins is stored on the servers of the service owner, which significantly reduces the security of such wallets.

Software wallets

Software wallets are usually divided into thick and thin, depending on the method of interaction with the blockchain. Software types of wallets include both mobile and desktop wallets.

Thick software wallets, when installed on a device for making transactions and maintaining the network, loads the entire or a significant part (depending on the network architecture) of the cryptocurrency blockchain to the user’s device. Such a wallet can occupy several hundred gigabytes and this is a significant disadvantage, which does not allow using this type of wallet, for example, on mobile devices.

Thin wallets are focused on convenience, but, importantly, with them, users ‘ keys still remain under their control. They do not require downloading the entire blockchain, they are synchronized faster. They have a large number of additional functions: from transaction history, selection of the commission amount, additional encryption, advanced authorization methods, to support several cryptocurrencies at once.

Mobile wallets have the form of applications and are installed on smartphones and tablets running the Android and iOS operating systems. They are easy to use and allow you to perform the entire list of necessary operations with your account directly from your mobile device. The private key is stored on the device itself, so in case of theft or hacking, an attacker can gain access to the user’s funds.

Desktop wallets are similar to mobile ones. They are software that is installed on a laptop or computer running various operating systems: Windows, macOS, Linux, etc. Such wallets have a high level of security, work quickly and stably. The main feature of desktop wallets is their versatility. Such wallets can have integration with exchanges and trading platforms. A desktop wallet can be either thick or light.

Hardware wallets are special devices for storing cryptocurrencies that look like flash drive. Hardware wallets store private keys in a secure zone of the microcontroller, and their transfer is carried out exclusively in an encrypted format. Such devices cannot be hacked without having physical access to them. Another significant advantage of such wallets, compared to desktop or mobile ones, is resistance to viruses and spyware. The two largest manufacturers of hardware wallets on the market are Ledger and Trezor.

Paper wallets were popular for the first time after the emergence of cryptocurrencies. Paper wallets are literally a piece of paper with the public and private keys of the wallet owner written on it. The keys could be presented in the form of a QR code. Today, this method of storing cryptocurrencies is completely outdated, due to the development of more advanced and secure software and hardware wallets.


Centralized (CEX) and decentralized exchanges (DEX) are fundamentally different from each other.

CEX is an exchange that is managed from a single center. Control over exchange operations, security of funds, and maintenance lie on the shoulders of the exchange administration.

Advantages: The ability to work with fiat, the availability of extensive functionality for trading, liquidity

Disadvantages: No access to private keys, security risk, price manipulation (bots, etc.), verification

When you store funds on the exchange, they become not yours until you withdraw them to your wallet.

DEX is an autonomous financial protocol running on smart contracts, providing users with full control over their assets and a high level of security. DEX works on the principle of decentralized applications on the blockchain (DApp). The popularity of decentralized cryptocurrency exchanges has increased significantly with the development of decentralized finance (DeFi). DEX is completely free from any government regulation, monitoring requirements, and rules. DEX does not have access to user private keys, which significantly increases the security of the safety of users ‘ crypto assets.

An important advantage of DEX is also privacy and anonymity. All transactions on decentralized exchanges are peer-to-peer (P2P), which significantly increases the level of trade transparency. When trading on DEX, traders do not need to go through the KYC procedure and send their confidential information to third parties. Trading on DEX is carried out through a decentralized network, which significantly reduces the threat of hacker attacks and increases the system’s fault tolerance in the event of a failure of individual network nodes. The importance of maintaining control over private keys and ease of use allowed DEX to win a significant share of the cryptocurrency trading market.

Newdex is a leading decentralized exchange with an order book for reconciliation and settlement within the network, aggregating the depth of various AMM DEXs. The Newdex platform has been upgraded from a decentralized order book exchange to a comprehensive decentralized exchange model, successfully combining Newdex limit order volumes and the depth of liquidity pools of major swap services on the EOS network (Defibox, Defis Network, etc.), allowing users to EOS get the best liquidity and trading experience.

It is the first of its kind trading tool in the EOS ecosystem. Newdex aims to leverage the benefits of DeFi to summarize DEX liquidity across multiple blockchains, develop complex DEXs with the best liquidity, best price, and best experience, providing users with the best decentralized trading experience to become a single tool for decentralized multi-chain trading.

Defibox has officially launched on BSC on July 21, 2021, connecting the Swap protocol to the Binance Smart Chain, and will start Swap protocol mining on July 23, 2021. Users will be able to earn BOX rewards from market-making and staking LP Tokens.

Defibox was initiated and managed by the Defibox Foundation. It launched on the EOS chain on July 21, 2020, and the Swap protocol launches on BSC on July 21, 2021. It is committed to becoming the most popular DeFi application platform for users. Currently, the Swap protocol is live. Forward to the digital revolution!



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