One thing I see here is you trying to teach what you might have learnt, I will say don’t try too much in teaching at an early stages of learning. Also this thread shows that you have gotten this informations outside this forum I think you should prioritize using this forum for learn more often there are more accurate information here than outside the forum.
Types of Bitcoin wallet
-Hardware wallet
-software wallet
-custodial wallet
There are two main types of wallet which is
- non-custodial wallet: this wallets allow you to own your seed phrase and this gives you total ownership to your wallet without third party which is classified into two either cold wallet or hot wallet. The cold wallet are those wallet that do not touch the internet and have their wallet seed phrase offline example is the hardware wallet and also some soft wallet which are installed on an airgapped device, both not going not coming online are regarded as cold wallet and this type of wallet are the most secured wallet for bitcoin storage. Then the hot wallet are those wallet that you have their seed phrase but they are regularly online a perfect example is the software wallets, this wallets are less secure than the cold wallet because their seed phrase and private key are not offline and this can cause hacks through different means.
- Custodial wallet: these are wallet that do not give you full custodianship the seed phrase and keys are not giving. The ownership of this wallet are totally handed over to a third party. Example are the exchanges. They are the least secure place to store your coins.
Best practices for wallet security
- Using strong passwords and two factor authentication (2FA): by using strong password your wallets is less vulnerable to hacking attacks and by introducing a second layer of verification in addition to a password, 2FA seeks to improve security and makes it harder for unauthorized individuals to gain access to your crypto currency account.
- Regular update and maintenance to wallet software to protect against vulnerabilities.
- Backing up data: ensure that all digital files are encrypted with strong password. Regularly backup new update i.e whenever you makes changes to your wallets, such as adding new addresses or generating new keys, update your backup to reflect these changes.
The remaining thread talks about wallet security. Here is the best security practice: never store your bitcoin on a custodial wallet. Store them were you have full ownership to your wallet which is the self or non custodial wallet while going for a non custodial wallet go for cold wallet.
Then back up your wallet seed phrase offline on a metal plate if necessary and store in two or more different locations. Use watch only wallet to watch your wallet on online devices.
Treat exchanges as marketplaces, simply buy bitcoin there and move them out