The relationship between common blockchain tokens and their native chains affects wallet selection

Blockchain can be divided into native tokens and contract tokens. Every transaction on the blockchain requires the use of native tokens to pay for transaction fees (gas fees). Therefore, if your cold wallet holds a contract token like USDT, you usually need enough native tokens to cover the transaction fees. In contrast, with hot wallets, such as Trust Wallet, you don't need to hold native tokens because they can deduct fees directly from your contract tokens. This is because, in a hot wallet, you don't truly own the wallet address; instead, you have an account managed by the hot wallet provider. Your blockchain wallet requires multiple key signatures or is fully controlled by the hot wallet provider. Even though you need a seed phrase for recovery, it only serves to verify that you are the holder of the hot wallet. When you conduct a transaction with USDT, a portion of it will be deducted as a transaction fee, but at the blockchain level, transactions still consume the native tokens. Essentially, you are using part of your USDT to purchase a small amount of native tokens, which is automatically handled by the hot wallet provider.

If you want absolute control over your wallet, it's best to use a cold wallet. A cold wallet requires you to keep your private keys secure. If those keys are leaked to a third party, they gain full control over your assets. On the other hand, if you are willing to trade some control for convenience, you can opt for a hot wallet. Hot wallets offer easier transactions and more features, such as supporting multiple blockchains and various token exchanges. Since hot wallets are managed by service providers who hold the tokens and private keys, it's crucial to choose a reliable provider to prevent asset loss.

Here are some common blockchains:

• Bitcoin: The only token is BTC, which is the first decentralized cryptocurrency.
• Ethereum: The native token is ETH, and other tokens run on the ERC20 network.
• Polygon: The native token is MATIC, a sidechain of Ethereum aimed at reducing transaction fees and congestion on the Ethereum chain.
• Tron: The native token is TRX, with other tokens running on the TRC20 network.
• Lightning Network: A second-layer solution built on the Bitcoin blockchain, designed to address scalability issues. It processes a large number of transactions outside the Bitcoin blockchain to increase transaction speed and lower fees. Two parties lock a certain amount of Bitcoin on the Bitcoin blockchain to open a transaction channel, allowing them to make unlimited transactions within that channel without recording each one on-chain.

Here are some common tokens:

• BTC (Bitcoin): The native token of the Bitcoin blockchain, which can also be traded on extension networks like the Lightning Network.
• ETH (Ethereum): The native token of the Ethereum blockchain, also functioning as a smart contract token on other chains like Polygon.
• USDT (Tether): A contract token issued on multiple blockchains, such as Tron, Ethereum, and Polygon.
• USDC (USD Coin): Similar to USDT, this is a contract token issued on multiple blockchains but complies with U.S. government regulations and maintains sufficient reserves of USD for redemption.

If a wallet supports a specific blockchain, it usually also supports the contract tokens issued on that blockchain. Therefore, the range of wallet tools depends on the blockchains they support. Here are some common blockchains and the wallets that support them:

• Bitcoin: Trust Wallet, Coinbase Wallet, Exodus, Ledger Live, Coinomi.
• Ethereum: MetaMask, Trust Wallet, Coinbase Wallet, Atomic Wallet, MyEtherWallet, Ledger Live, Coinomi, Guarda Wallet.
• Polygon: MetaMask, Coinbase Wallet.
• Tron: TronLink, Trust Wallet, Exodus.
• Lightning Network: Phoenix Wallet, Electrum, Muun, BlueWallet, Zap, Breez, Wallet of Satoshi.