Hot Wallet Vs Cold Wallet: What's the Difference?

Hey All,

I was browsing my twitter feeds today and came across this pretty insightful Infographic from Binance that showcases the difference between Hot & Cold Wallets. If you are in the crypto space then you should be familiar with these types of wallets and decide when to use them. I'll be very honest here in my case all my crypto is on a hot wallet but whereas experts suggest to leverage COLD wallets to HODL your major crypto holdings. Simply don't have it lying ideal on any exchange or any other platform that provides crypto wallet services.

Now that we have some understanding of these wallets, lets look at some of the major differences between::

Hot Vs Cold Wallets...

The above table clearly distinguishes between HOT and COLD Wallet. Based on ones usage folks can decided which wallet they would like to use the most. The mass usage as of date is of HOT wallets because they are FREE and simply to use. But one must note that it comes at a cost. If an exchange fails, becomes bankrupt or gets hacked/vulnerable then there are high likely chances of losing your crypto tokens. Whereas on the other side if you are not a trader and would like to HOLD your crypto at a safe place then the best wallet to use is COLD wallet like Ledger Nano X, Trezor Model T, ELLIPAL Titan Bundle and many others. As I stated above, I still do not HODL a cold wallet but would love to have one in near future. Hope you found this article interesting and can now clearly differentiate between - Hot Wallet Vs Cold Wallet and when to use ONE..... cheers

Have Your Say on HOT Vs COLD WALLETs...

Do you normally use HOT OR COLD Wallet? Which would will be your first preference? Would love to hear your thoughts around it in the comment box below? Cheers

Hot Wallets Vs Cold Wallets

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Image Credits:: binance, twitter

Best Regards