Josemendez
Verified member
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 ?
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 ?