Differences between Cobo Cloud Wallet and Cobo HD Walelt

The key difference between Cobo Cloud Wallet and Cobo HD Wallet (Hierarchical Deterministic Wallet) is where the private key is stored (see what is a private key and how to store it).

For Cloud Wallet, the private keys are stored securely with Cobo on the hardware security module and we help execute transactions. For the HD Wallet, the private keys are encrypted into a recovery phrase (containing 12 words), which you are the only one who knows it.

You will not need to input the private key every time you make a transaction because Cobo automates the process. However, for HD Wallet you must remember the recovery phrase to restore it.