WHAT IS A BURNER WALLET
A “Burner Wallet” as it name says is a billetera dedicated to burn. That is, the burner wallets are as any other wallets of crypto. The only difference is that they are created for a specific use and do not use it later, they are “disposable wallets”.
They are usually used to mint NFTs or making transactions into a dApp/Tool. These actions are done in external and unknown websites where we are not safe as they could be scam.
The main purpose of using a Burner Wallet is maintain your holdings, wether they are cryptocurrencies, NFTs or tokens, safe of any kind of drain or scam. This is because if we interact on certain pages with our main wallet we can lose our “keys” or they can directly make a transaction that makes us lose all our assets.
This Burner Wallet is kept empty or with very few assets inside, we only add the value we need to make the transaction we want. Thanks to this we reduce the risk of losing our possessions and the only thing we can lose is what is necessary for the transaction we want to make (what we have in the burner wallet).
KEYS YOU CAN NOT MISS ABOUT Burner Wallet
1. A burner wallet is an occasional wallet and should not contain a large portion of your crypto assets. Keep your permanent wallet separate from the burner.
2. Security is important, you should not always keep the same burner wallet, but periodically you should create a new one.
3. Use a cold wallet (like this ledger) to store your holdings for the long term. While you have secondary wallets that are “burner wallet” to use in your day to day.
There are so much scam cases that confirm that we need to use a disposable wallet. Since the cryptocurrency industry is still developing, which makes it appear that people take advantage of the moment to scam less experienced users.
However, the best way to avoid crypto scams and losses is to stay informed and do thorough research before investing and trading crypto. Because, although burner wallets act as a safety net, knowingly avoiding scam sites is the best way to protect yourself.