What are the differences between Cloud Wallet and HD Wallet (Hierarchical Deterministic Wallet)?
There is one main difference between Cobo Cloud Wallet and Cobo HD Wallet, that is where the private key is stored (see what is a private key and how to store it).
For the Cloud Wallet, the private keys are stored by Cobo Wallet on the hardware security module and we help execute transactions for you. You will have access to your fund and do whatever you want, but you can leave asset security to us!
For the HD Wallet, the private keys are encrypted into a recovery phrase (12 or 24 words), which you are the sole owner of. It means that if you lose your recovery phrase or private key, you lose your assets forever! Please, be careful with your private key and recovery phrase and never give it out to anyone.
You won't need to input the private key every time you make a transaction because Cobo automated the process. However, for HD Wallet you must remember the recovery phrase in case you need to restore it.
Here is a table comparing Cloud and HD Wallet in more details:
