Hot wallets Hot wallet versus Cold wallets which do you prefer?

[Josemendez]

Most of us might be surprised to hear about Hot wallets and cold wallets. Well, they are called so base on the nature of their usage.

Hot wallets are those wallets that are connected to the internet all the time , especially when we switch on our Internet connection while cold wallet , also called offline wallet are those wallet that are in form of hardwares like USB drive . They are cold because they are not always connected to the internet. They are only connect when there is need to make a transaction.

Cold wallet seems to be safer as fraudsters cannot hack it as it is not always connected to the internet , but it has it's risk as when the hardware lost , the bitcoin is lost, but with hot wallets even when we lose our phone , with our private key , we can get back the funds .
The only challenge with cold wallet is that they are very costly.
Which of them will you prefer , cold or hot wallet ?

 

[Mika]

You have explained this right. Hot wallets are for those who use cryptocurrencies to make transactions, whether in the form of buying and selling something, or trading. Cold wallets are for those who like to invest in crypto currency and hold crypto currency for the long term. Cold wallets are safe if you worry about wallet hacking.

 

[Yugocean]

Hot wallet is like bank acvount. When you have small amount, which are for transaction (trade or any other), then use of hot wallet is best option.

Cold wallet is like bank locker, where you keep whatever is yours. When you have large amount, then always store in cold wallet, even platforms do that.

 

[Sotherefore]

I know all of them have their own advantage and disadvantages but the most popular one is the hot wallet and that is the one a lot of people are using in storing of their cryptocurrency. if I have money I'll go for the Cold wallet and I know it is only for people who have invested so much millions of dollars in crypto.