What is the difference between a hot wallet and a cold wallet for NEM (XEM)?

3 answers

• Nov 29, 2021 · 3 years ago
  A hot wallet is a cryptocurrency wallet that is connected to the internet, making it more vulnerable to hacking and theft. It is convenient for frequent transactions, but not recommended for storing large amounts of NEM (XEM) coins. On the other hand, a cold wallet is an offline wallet that is not connected to the internet. It provides a higher level of security as it is not susceptible to online attacks. Cold wallets are ideal for long-term storage of NEM (XEM) coins, as they offer better protection against potential threats.
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• Nov 29, 2021 · 3 years ago
  Think of a hot wallet as a digital wallet on your smartphone or computer. It's like carrying cash in your pocket - easy to access and use for everyday transactions. However, just like you wouldn't carry all your savings in your pocket, it's not recommended to store large amounts of NEM (XEM) coins in a hot wallet. A cold wallet, on the other hand, is like a safe deposit box in a bank. It's offline and provides an extra layer of security for your NEM (XEM) coins. Cold wallets are best for long-term storage and protecting your assets from online threats.
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• Nov 29, 2021 · 3 years ago
  As an expert in the field, I can tell you that a hot wallet is a wallet that is connected to the internet, while a cold wallet is not. Hot wallets are more vulnerable to hacking and theft, but they are convenient for quick transactions. Cold wallets, on the other hand, offer a higher level of security as they are offline and not susceptible to online attacks. If you're looking for the best way to store your NEM (XEM) coins, I would recommend using a cold wallet for long-term storage and a hot wallet for day-to-day transactions.
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