Cryptocurrency

Hot or Cold, How Should I Take My Cryptocurrency Wallet2 min read

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Having a secure wallet that you are able to trust is an absolute necessity in the cryptocurrency world. The price of Bitcoin is over $5000 and could be swooped from you by sophisticated hackers in the blink of an eye if you don’t choose the right wallet. Debate has always raged on what kind of wallet is better, a cold storage wallet or a hot storage wallet. In this piece we weigh both to help us decide.

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Hot Storage Wallet

What makes for a hot storage wallet is that it is a wallet store in a device that is connected live to the internet. It is akin to the wallet you put in your pocket to go to the gas station or the mall to conduct transactions. Hot wallets are convenient for day to day transactions it is what you take with you around town while you stash the rest of your wealth safely in the bank.

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Pros

  • It is readily available for the conduct of transactions
  • You can store it on a wide range of devices, also supports many kinds of cryptocurrencies
  • It usually comes with easy to understand user interface to make it hassle-free

Cons

  • Exposure to possible hacks
  • You could lose your digital currency if the device gets damaged or stolen
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Cold Storage Wallets

When your wallet is resident on a device that is permanently kept offline, it is referred to as a cold wallet. This the preferred option for those who want to use a wallet for vault purposes. They are for safekeeping rather than transactional purposes

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Pros

  • Perfect for storing all your cryptocurrency investment
  • Is safe from bitcoin thieves and hackers as a result of being cut-off from the internet

 

Cons

  • It is much slower for transactions as you need to transfer to a second wallet before you get it done
  • A little more difficult to set up due to added security features it might come with.

 

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