What are the differences between a cold wallet and a hot wallet for crypto?

3 answers

• Mar 06, 2022 · 3 years ago
  A cold wallet is a type of cryptocurrency wallet that is not connected to the internet. It is usually a physical device or a piece of paper where you store your private keys offline. This makes it highly secure as it is not vulnerable to online attacks. However, it can be less convenient to use as you need to physically connect it to a computer or mobile device to make transactions.
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• Mar 06, 2022 · 3 years ago
  On the other hand, a hot wallet is a wallet that is connected to the internet. It can be a software wallet installed on your computer or a mobile app on your phone. Hot wallets are more convenient to use as you can easily access your funds and make transactions anytime, anywhere. However, they are more susceptible to hacking and online attacks compared to cold wallets.
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• Mar 06, 2022 · 3 years ago
  At BYDFi, we recommend using a combination of both cold and hot wallets for maximum security. Keep the majority of your funds in a cold wallet for long-term storage and use a hot wallet for day-to-day transactions. This way, you can enjoy the convenience of a hot wallet while keeping the majority of your funds secure in a cold wallet.
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