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

3 answers

• Dec 16, 2021 · 3 years ago
  A hot wallet for Stellar is a wallet that is connected to the internet and is used for frequent transactions. It provides quick and easy access to your Stellar assets, making it convenient for day-to-day use. However, because it is connected to the internet, it is more susceptible to hacking and other security risks. It is recommended to only keep a small amount of Stellar assets in a hot wallet for daily use, while storing the majority of your assets in a cold wallet for enhanced security.
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• Dec 16, 2021 · 3 years ago
  A cold wallet for Stellar, on the other hand, is a wallet that is not connected to the internet. It is often in the form of a hardware device or a paper wallet. Cold wallets provide a higher level of security as they are not vulnerable to online attacks. However, they are less convenient to use for frequent transactions as they require manual intervention to sign and approve transactions. Cold wallets are ideal for long-term storage of Stellar assets and are recommended for those who prioritize security over accessibility.
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• Dec 16, 2021 · 3 years ago
  At BYDFi, we understand the importance of security when it comes to storing your Stellar assets. That's why we recommend using a combination of hot and cold wallets. Keep a small amount of Stellar assets in a hot wallet for daily use and store the majority of your assets in a cold wallet for long-term storage. This way, you can enjoy the convenience of quick access while ensuring the highest level of security for your Stellar assets.
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