Hosted Wallet

Hosted wallets can be termed crypto wallets that are often managed by third-party services. When a user creates an account with third-party exchanges, they create an entry on behalf of the user in their internal database.

This allows the hosts to link the user’s account with key pairs for the different coins listed on the exchange. Hosted wallets hold an advantage since it allows users to recover their password in case they forget or misplace it whatsoever. After all, losing your private keys along with the mnemonic phrase can be the end game for you.