Cryptocurrency wallets: Cold wallets vs. Hot wallets

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Avatar for Jamesdonald
3 years ago

Cryptocurrency wallet

  • Software that stores access keys

  • Used to exchange cryptocurrencies

  • Users can view balances

Types of cryptocurrency wallets

  • Hot wallets 

  • Cold wallets

Hot wallets

  • Exists online

  • Mobile or desktop

  • Can be non-custodial or custodial

  • Suitable for active users (regular transactions)

Hot wallets: Pros

  • Highly accessible

  • Available on any internet-enabled device

  • Often free of cost

Hot wallets: Cons

  • Vulnerable to hacking

  • Technical issues

Cold wallets

  • Exists offline

  • Usually a hardware device or paper wallet

  • Suitable for long-term savings

Cold wallets: Pros 

  • Extremely secure

  • No issues involving internet

Cold wallets: Cons

  • Not easily accessible

  • Expensive 

Cryptocurrency wallet development

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Avatar for Jamesdonald
3 years ago

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