Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Crypto Wallets => Topic started by: Gposas on November 10, 2024, 08:41:48 PM
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With my little research on Crypto wallets, I understood that wallets aren't directly a medium of storage for assets rather they stand to provide necessary information for sending and receiving assets on a Blockchain network simplifying that all assets are stored on the Blockchain. And these informations provided are made up of private and public keys by which the wallet address is generated.
It is obvious most users know about the types of Wallet which are the cold and hot wallet (hardware and software wallet) though the paper wallet is also among but almost forgotten....
The Cold wallet being a hardware form of wallet having no attachment to the internet rather is a separate device tends to have stronger security and hacked-free since it stays alone but is subject to being stolen when it isn't kept safely.
Are these wallets widely used? And where can they be bought cause it seems more anonymous to users like me.
Now, it is clearly seen that the HOT wallet being a software form of wallet is widely used because of its users-friendly nature attached with it's internet usability. Though these wallets tends to be secured but is not as secured as the cold wallet, and they can be hacked since they need internet to work... But these are the wallets I've been using and they are still what I make use of.
Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
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If you have just small amount of coins like $50, it is better to use hot wallet for it but make sure you avoid malware. But if you have huge amount of coins like $5000 or higher, you can use cold wallet instead.
Example of a cold wallet is a wallet on an airgapped device. Also another example are hardware wallets that are airgapped. Using QR code for making transaction. Another example is a paper wallet generated on an airgapped device.
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For individuals like me who cannot afford hardwallets for now then non-custodial wallets or hot wallets plays an important role for me as a crypto enthusiast. So far I don't have any problems using them and I am doing well with most of them though we have preferred hot wallets due to convenience but it will change in the long run due to some improvements or existence of new hot wallets.
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use of.
Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
They aren't difficult to get.. the cold storage can be bought directly from their officially sites and delivered to you.. but then just like Charles Tim said, it's better to go for a hot wallet when you have a little amount of coins except it's really necessary for you to keep your coins offline... Again, when choosing hot wallets, you should make sure to choose good and reputable ones. Avoid any unknown wallet so you don't complicate your coins.. what ever type of wallet you choose to use, make sure to keep your keys secure thats what really matters.
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Seems to me that there is a generally accepted agreement that if one has big holdings in crypto like having more than $100K to maybe a million dollar in value then the best choice is the cold wallet option and we should assume that one who got those valuable holding can afford to buy a hardware wallet. For people like me, then hot wallet can be the best choice since it is free. Now, both can actually be stolen and hacked as there is no more 100% guaranteed safe in the world we are in. In summary, what can be best depends on each individual under different situations.
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Seems to me that there is a generally accepted agreement that if one has big holdings in crypto like having more than $100K to maybe a million dollar in value then the best choice is the cold wallet option and we should assume that one who got those valuable holding can afford to buy a hardware wallet. For people like me, then hot wallet can be the best choice since it is free. Now, both can actually be stolen and hacked as there is no more 100% guaranteed safe in the world we are in. In summary, what can be best depends on each individual under different situations.
Yep, cold wallet for bigger holdings, as what @Charles-Tim says, it's better be a airgapped, that is not connected in the Internet, but the downside is that you should really know how to set it up.
For most of us here, a hot wallet like Electrum is already good for holding smaller amount of Bitcoin for example. It's one of the best, you just have to back up the mnemonic phrase and seed and Private Key.
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I think that HOT wallet is one of the best crypto wallet in this time. Because if we follow in cryptocurrency market, we can see that in this time hot wallet spread it’s fame in cryptocurrency world. So i believe that if we hold or invest in small amount, HOT wallet will be best choice for me. Because i think that small amount wil be best profitable for HOT wallet. But if we want to invest or hold in huge amount, than could wallet will be best profitable in cryptocurrency market. So i believe that in future HOT wallet will be best crypto assets in cryptocurrency world.
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I think that HOT wallet is one of the best crypto wallet in this time. Because if we follow in cryptocurrency market, we can see that in this time hot wallet spread it’s fame in cryptocurrency world.
So i believe that if we hold or invest in small amount, HOT wallet will be best choice for me. Because i think that small amount wil be best profitable for HOT wallet. But if we want to invest or hold in huge amount, than could wallet will be best profitable in cryptocurrency market. So i believe that in future HOT wallet will be best crypto assets in cryptocurrency world.
There are just two types of wallets in this category. They are hot/online and cold/offline wallets. Web wallet, mobile wallet, desktop wallet, paper wallet, hardware wallet and wallets on airgapped devices fall under just hot and cold wallets. So posting that hot wallets are one of the best wallets is somehow because they are not more than the two types.
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
The answer is actually written in the post, cold wallets have better security because it takes several processes to be able to make transactions... this extra layer of security is what makes cold wallets often trusted by companies such as cryptocurrency exchanges. However, it is undeniable that the price is much more expensive when compared to hot wallets.
As a personal user, I think a hot wallet is enough to store the assets I have. Unless my total assets are quite large, maybe I will start thinking about using a better wallet, such as a hardware wallet.
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Hot wallets still has sub categories like custodial and non custodial so we need to say which one is good even for a beginner which is non custodial since we own the keys not the wallet providers for example Electrum, Blue wallet, etc which are software wallets can be used on devices with or without internet depends on which one we feel suited for us.
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You can get more information and more detailed discussions by searching Bitcointalk or Google, but in general a cold wallet can be turned into a hot wallet by connecting it to the internet, so there is no specific type of wallet, but rather how to use the wallet. Using an open source, well-reviewed wallet in a clean operating system is good, but if the amount is larger, running that wallet in an airgapped environment is better.
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Now, both can actually be stolen and hacked as there is no more 100% guaranteed safe in the world we are in. In summary, what can be best depends on each individual under different situations.
Both the cold wallet can be hacked???
This is my first time of hearing this.... I was thinking that the cold wallet can never be hacked since it has no acquaintance with the internet...
Though I don't know much about hacking, but I guess most of their cyber work is web-related and fostered by the internet....
Then how possibly can a device that is on its own be hacked?? Though I haven't seen one neither do I know it's components but If u don't mind, you can share your thoughts on how you think this device can be hacked...
Pls, cause I would love to know.
Thanks.
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If you have just small amount of coins like $50, it is better to use hot wallet for it but make sure you avoid malware. But if you have huge amount of coins like $5000 or higher, you can use cold wallet instead.
Example of a cold wallet is a wallet on an airgapped device. Also another example are hardware wallets that are airgapped. Using QR code for making transaction. Another example is a paper wallet generated on an airgapped device.
If I get you correctly mate, that simply means not everyone can get this cold wallet (ie regular Investors/traders). Since not all in the Crypto world has up to that amount you mentioned ($5000).
From your comments, this simply means the cold wallet is owned either by Big-time individual Investors or Institutional investors.
But such amount can also be stored on HOT wallet right? That's apart from the sake of safety and security.
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You can get more information and more detailed discussions by searching Bitcointalk or Google, but in general a cold wallet can be turned into a hot wallet by connecting it to the internet, so there is no specific type of wallet, but rather how to use the wallet. Using an open source, well-reviewed wallet in a clean operating system is good, but if the amount is larger, running that wallet in an airgapped environment is better.
Another fascinating point....
You are simply saying there ain't different wallets? Since the Cold can be transformed to a Hot wallet, leaving all to just be a Hot wallet or no differentiation between the two?
You could share how this works too and pls can the Hot wallet also be transformed to a cold wallet? Or it's just a one sided thing....
Your thoughts remains gladly appreciated.
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Both the cold wallet can be hacked???
This is my first time of hearing this.... I was thinking that the cold wallet can never be hacked since it has no acquaintance with the internet...
Let as assume that it is cold wallet, no seed phrase or private key compromise online and it can not be hacked online. If the person that has the wallet do not protect the seed phrase offline, someone can see the seed phrase backup and use it to compromise the wallet. That is why I prefer to use passphrase which I backup somewhere else. But cold wallet that is properly set up can not be hacked.
From your comments, this simply means the cold wallet is owned either by Big-time individual Investors or Institutional investors.
But such amount can also be stored on HOT wallet right? That's apart from the sake of safety and security.
Millions of people have more than $5000.
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I use both, both have their advantages, hot wallets are convenient while hardware wallets are secure. Accordingly, I use hot wallets for little amount of money and to do regular transactions while hardware wallets for long term holdings.
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Hot wallets and cold wallet both have their advantages and disadvantages as well as importances. The idea is if you're willing to constantly spend for the particular wallet then the best option should be a hot wallet and not a cold wallet. This is simply because of the stress attached to signing a transaction on a cold wallet either in the form of a hardware wallet or an airgapped device.
The idea of implementing or making use of cold wallet is actually to optimize security especially in the case of trying to hold some coins. The idea is that the internet is full of a lot of vulnerabilities therefore it will be quite risky to keep your investments all on the internet because of the dangers involved. Most businesses can have tons of coins on a hot wallet and that is simply because the Spend constantly from it.
The whole idea is keeping your keys as safe as possible.
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Even without reading through the replies in the comment section, i want to believe that some users must have provided you with the necessary answers. But just to add to what've been said.
The Cold wallet being a hardware form of wallet having no attachment to the internet rather is a separate device tends to have stronger security and hacked-free since it stays alone but is subject to being stolen when it isn't kept safely.
Are these wallets widely used?
Of course, Cold wallets are widely used, because you don't expect a whale or someone that has a decent amount of crypto assets to store their funds in a software wallet or a centralized exchange(though some funny people practices this which is very wrong).
And where can they be bought cause it seems more anonymous to users like me.
There is nothing special. It's just a wallet for storing crypto(though, more secure). You can get anyone of your choice when you visit their official sites to place an order, but you just have to be careful, so you don't buy a wallet that that has been compromised.
Now, it is clearly seen that the HOT wallet being a software form of wallet is widely used because of its users-friendly nature attached with it's internet usability. Though these wallets tends to be secured but is not as secured as the cold wallet, and they can be hacked since they need internet to work... But these are the wallets I've been using and they are still what I make use of.
Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
Software wallet are never the best. I guess most people opt for them because they're cheap, unlike a cold wallet that is costly. And, you are right by saying that hot wallet looks more user friendly, but i don't think that anyone will be willing to trade their security for user-friendly. If you have a decent amount of crypto asset, then don't take the risk by using a software wallet. A decent amount belongs to a cold storage.
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You could share how this works too and pls can the Hot wallet also be transformed to a cold wallet? Or it's just a one sided thing....
Your thoughts remains gladly appreciated.
A cold wallet is never connected to the Internet, once you connect it to the Internet, you can no longer call it a cold wallet. This means that, your hot wallet remains a hot wallet as long as you have exposed it to the Internet and you cannot convert it back to a cold wallet. The most you can do is to transfer all your coins from your hot wallet to a different cold wallet for added security.
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You could share how this works too and pls can the Hot wallet also be transformed to a cold wallet? Or it's just a one sided thing....
Your thoughts remains gladly appreciated.
A cold wallet is never connected to the Internet, once you connect it to the Internet, you can no longer call it a cold wallet. This means that, your hot wallet remains a hot wallet as long as you have exposed it to the Internet and you cannot convert it back to a cold wallet. The most you can do is to transfer all your coins from your hot wallet to a different cold wallet for added security.
If we have a fairly large crypto asset, we should have a cold wallet, which is not connected to the internet so that security is maintained from hackers and phishing.
My assets are not that big so I store them in a hot wallet, but I always keep them from being connected to suspicious links.
When I participate in airdrops and bounties, I always use a new wallet for the security of my main wallet.
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A cold wallet is never connected to the Internet, once you connect it to the Internet, you can no longer call it a cold wallet. This means that, your hot wallet remains a hot wallet as long as you have exposed it to the Internet and you cannot convert it back to a cold wallet. The most you can do is to transfer all your coins from your hot wallet to a different cold wallet for added security.
Good and simple explanation (1 +karma for you)
It's easy to understand the concept of cold wallet and hot wallet, but sometimes we mix up the hardwallet and it can get a bit confusing for those who don't understand it yet
A very simple tip is to use cold wallet for any amount of money as long as you won't be using the coins anytime soon, it's a good practice to start
Now if you're going to participate in Defis, lend/borrow protocols, you'll need to use the hot wallet, and if it's a considerable amount, I always recommend a hardwallet
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For individuals like me who cannot afford hardwallets for now then non-custodial wallets or hot wallets plays an important role for me as a crypto enthusiast. So far I don't have any problems using them and I am doing well with most of them though we have preferred hot wallets due to convenience but it will change in the long run due to some improvements or existence of new hot wallets.
I've been here in the crypto space for 7 years so far I haven't had any problems with cold wallets even though I haven't bought a hardware wallet yet. the only ones I use right now are cold wallets and non-custodial wallets, such as Electrum, Sparrow wallet, blue wallet, and Trust wallet, metamask, phantom,
these are the only ones I use often.
But I hope I can save money to buy hardware wallets, because I also believe that it is really safer to use them. It seems like right now I'm still taking the risk with the wallets I use and my other assets are in an exchange that I also trust.
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
just like in any other aspect of crypto, it depends on your own preference
if you are keen to just hodl and you will never touch your funds again then go for the cold wallet but if you are someone who will still plan on buying/selling or just moving your coins to a stablecoins then use the hot one just make sure what you choose for either one is safe and meets your requirements/standards
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For individuals like me who cannot afford hardwallets for now then non-custodial wallets or hot wallets plays an important role for me as a crypto enthusiast. So far I don't have any problems using them and I am doing well with most of them though we have preferred hot wallets due to convenience but it will change in the long run due to some improvements or existence of new hot wallets.
I've been here in the crypto space for 7 years so far I haven't had any problems with cold wallets even though I haven't bought a hardware wallet yet. the only ones I use right now are cold wallets and non-custodial wallets, such as Electrum, Sparrow wallet, blue wallet, and Trust wallet, metamask, phantom,
these are the only ones I use often.
But I hope I can save money to buy hardware wallets, because I also believe that it is really safer to use them. It seems like right now I'm still taking the risk with the wallets I use and my other assets are in an exchange that I also trust.
All these mentioned wallets are hot wallets, because they are connected to Internet. Anyway, I use few of those too (Blue, Trust, MM), and never had any problem with those either but again I am in same boat as you and don't feel safe when holding good amounts in these wallets, so I move significant amounts to HW.
I also do lot of airdrop stuff, so it's wise to not keep much funds in hot wallet.
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if you are keen to just hodl and you will never touch your funds again then go for the cold wallet but if you are someone who will still plan on buying/selling or just moving your coins to a stablecoins then use the hot one just make sure what you choose for either one is safe and meets your requirements/standards
I do not really agree with this. If you are holding bitcoin but not more than $20 to $50, I do not think you should get a hardware wallet. But if you are planning to hold more and you know that the money will accumulate, you can get a hardware wallet.
If you are planning to buy and sell, you may want to use a payment processor instead in a way the transactions that are cryptocurrencies from your customers can be received in fiat by you. That is the work of payment processors.
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A cold wallet is never connected to the Internet, once you connect it to the Internet, you can no longer call it a cold wallet. This means that, your hot wallet remains a hot wallet as long as you have exposed it to the Internet and you cannot convert it back to a cold wallet. The most you can do is to transfer all your coins from your hot wallet to a different cold wallet for added security.
Good and simple explanation (1 +karma for you)
It's easy to understand the concept of cold wallet and hot wallet, but sometimes we mix up the hardwallet and it can get a bit confusing for those who don't understand it yet
A very simple tip is to use cold wallet for any amount of money as long as you won't be using the coins anytime soon, it's a good practice to start
Now if you're going to participate in Defis, lend/borrow protocols, you'll need to use the hot wallet, and if it's a considerable amount, I always recommend a hardwallet
Thank you mate for the positive karma
You are right mate, there is no point getting a hardware wallet if you are going to be moving your funds in and out of the wallet all the time. The golden rule is, use cold wallets for large amounts you don't plan on moving out frequently.
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The mode of storing your crypto assets depends on; the size of your assets, your personal security choices and your environment.
The size of your assets will determine which form of storage or safe keeping will be used. As it's been said by earlier posters, if you posses a little amount of crypto you don't need a cold wallet for storage, cause to use the cold wallet, you'll need to purchase it from the company officially, either through their official website or their office.
In personal security choices, this depends on the individual. Do you have a particular device only for storage of your assets or the one you use for trading or hunting is what you also use for storage. I found out from some crypto enthusiasts that they have separate device for storage, and nothing else is done with that device, except when they want to check the value of their assets or make some transactions from it.
The environment matters if it is filled with lots of crypto users or none crypto users.
Those who knows about crypto, knows the value of some any security related to crypto and will make use of any wrong slight move. But when you have crypto noobs, they don't know what's valuable or not.
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I do not really agree with this. If you are holding bitcoin but not more than $20 to $50, I do not think you should get a hardware wallet. But if you are planning to hold more and you know that the money will accumulate, you can get a hardware wallet.
If you are planning to buy and sell, you may want to use a payment processor instead in a way the transactions that are cryptocurrencies from your customers can be received in fiat by you. That is the work of payment processors.
A while ago I posted a comment to a user with questions about exchanges, wallets, hardwallets etc
I agree with the part about small amounts not being worth using a hardwallet, it doesn't make sense to spend more than 70 dollars on a hardwallet if you're going to use very small amounts
In this holding range, a wallet on Android or IOS (Trust Wallet for example) should be fine
Good practices guarantee very good security
I'll even go a step further: in the amount you quoted of 20 to 50 dollars, it doesn't make much sense to withdraw to your wallet if you want coins with the most expensive withdrawal rates like ETH or BTC
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However, hot wallets also have several risks, including:
- Vulnerable to hacker attacks because they are always online.
- Depends on the security of the wallet provider platform.
- Vulnerable to hacking, fraud, and other online risks
while cold wallets are crypto wallets that store private keys offline. Cold wallets are safer because they are not vulnerable to hacking or cyber attacks. Cold wallets should be used to store large amounts of crypto assets and for the long term.
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Currently hot wallet is really the best because it helps users to send and receive cryptocurrency quickly and easily. Moreover, in the case of third party services or apps so it is easy to store cryptographic keys through this wallet. However, in the event of a cyber hack or service breach then you may lose your keys so resulting in the loss of all your assets. So every crypto user should select the appropriate wallet according to their needs and take proper measures to maintain security. If you can't keep kye secret well then you will be hacked. The more active you are in crypto the safer you will be, so careless you are in crypto then you will lose money.
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
When you said Hot wallet, I was thinking you were talking about a particular wallet which goes by the name "Hot wallet" developed by Near protocol and runs as a mini app on telegram. I had this believe in my mind until the very last word on your post before I finally realized what you meant by "Hot Wallet" was actually wallets that are connected to the internet for it's transactions to function.
Well, the truth of the matter is that, both hot and cold wallets are easily accessible to all, though hot wallet is more rampard and free, but cold wallet is more reserved and sold at a price. A really good cold wallet/hardware wallet can seem expensive for the average crypto user, but the benefits is that it offers more security to one's funds.
It's advisable to have both wallets types, cold/hardware wallet and hot wallet, long term crypto investments can go to the cold/hardware wallet while short term investment can be kept on the hot wallet. Remember, short term investment include crypto kept for day to day transactions and so.
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It can be said that each of them has advantages and disadvantages, and each has its different uses for different purposes, but of course the cold wallet is much better and safer than the hot wallet.
Hot wallets are used for daily transactions and must be connected to the Internet permanently to facilitate transactions, while cold wallets are used to hold assets in the long term in a safe manner. Therefore, most of the time we are forced to use both types together.
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It can be said that each of them has advantages and disadvantages, and each has its different uses for different purposes, but of course the cold wallet is much better and safer than the hot wallet.
Hot wallets are used for daily transactions and must be connected to the Internet permanently to facilitate transactions, while cold wallets are used to hold assets in the long term in a safe manner. Therefore, most of the time we are forced to use both types together.
You are right we should have a cold wallet to store primary assets for the long term, and a hot wallet for short and medium term investments.
To maintain the security of crypto assets, we can choose a cold wallet because it is not connected to the internet.
As for trading and daily transactions we can use a hot wallet, but even if we use a hot wallet for assets that are not so large, we still have to be careful because there are many scammers, hackers who will target our crypto assets.
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It can be said that each of them has advantages and disadvantages, and each has its different uses for different purposes, but of course the cold wallet is much better and safer than the hot wallet.
Hot wallets are used for daily transactions and must be connected to the Internet permanently to facilitate transactions, while cold wallets are used to hold assets in the long term in a safe manner. Therefore, most of the time we are forced to use both types together.
You are right we should have a cold wallet to store primary assets for the long term, and a hot wallet for short and medium term investments.
To maintain the security of crypto assets, we can choose a cold wallet because it is not connected to the internet.
As for trading and daily transactions we can use a hot wallet, but even if we use a hot wallet for assets that are not so large, we still have to be careful because there are many scammers, hackers who will target our crypto assets.
The fragmenting of the wallets used in maintaining crypto security is indeed a wise division. By having the main wallet therefore, we have added security because the main value resources are shielded from online threats. On the other hand, other wallets let us transact easier, but all through we must be fully conscious of threats with other players and we also have to be ready for possible transaction costs that may be needed any time we want to conduct transactions on the second wallet. Other than the risk, there are other costs that we incurred in doing transactions, which we called transaction costs. This step is very efficient if transaction costs are still cheap, as they are now, whereas if the transaction costs rise, this step must be taken into consideration.
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need understanding when interpreting HOT wallet, because in my mind it is HOT wallet from NEar before
so far I think it is more comfortable to use a cold wallet if I want to store assets that are used as investments, where I can reduce my transactions and remember my assets to be viewed continuously,
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Guys, a few pertinent observations:
1 - A Cold wallet doesn't necessarily have to be a hardwallet, you can create a cold wallet simply by generating your seed offline and not connecting that wallet online
2 - A cold wallet that is connected once, already becomes a hot wallet, no matter if it was just once or more
3 - Hardwallet is a device that generate your seeds offline and keep offline even if you use connected to your PC for example to sign your transactions
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The safest thing in this sector are certainly hardware wallets like the ledger but unfortunately they are quite expensive, a good hardware wallet to install on the PC and exodus even if not decentralized, alternatively there are mobile phone wallets which offer a decent level of protection
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
Online wallets should hold only a small portion of your funds because they are connected to the internet and are vulnerable to attacks, but they are important for spending on the go. Cold wallets should be used to store the large portion of your funds, and it should either be an airgapped wallet or a hardware wallet, no need to use a paper wallet anymore these days.
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
Use hot wallet for those coins you think you can use for regular use if ever you something to buy with it or the amount you want to convert to fiat.
Rule of thumb for cold wallet is only for holding for long term, with the thought that you won't touch the wallet everytime, you can at least check the wallet's balance on other wallet for as read-only with the use of wallet address or xpub.
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You could share how this works too and pls can the Hot wallet also be transformed to a cold wallet? Or it's just a one sided thing....
Your thoughts remains gladly appreciated.
A cold wallet is never connected to the Internet, once you connect it to the Internet, you can no longer call it a cold wallet. This means that, your hot wallet remains a hot wallet as long as you have exposed it to the Internet and you cannot convert it back to a cold wallet. The most you can do is to transfer all your coins from your hot wallet to a different cold wallet for added security.
I get the point now..
You're simply stating that the cold wallet remains cold when it's alone as a separate hardware device not connected to the internet by any means.
But when these hardware device is connected to the internet either for the sake of making transaction or something else, it can be referred as a Hot wallet (Cold-Hot wallet). And when transactions are done, the wallet remains in it's cold estate when separated from the internet.
Thanks for the educative comment.... Much appreciated.
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- Vulnerable to hacker attacks because they are always online.
I don't think average people would keep open their wallet application/file 24/7.
- Depends on the security of the wallet provider platform.
What exactly do you mean by platform? If you mean their server, it's only major concern when you use custodial or web wallet. Otherwise, you usually use their server to obtain and broadcast transaction.
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But when these hardware device is connected to the internet either for the sake of making transaction or something else, it can be referred as a Hot wallet (Cold-Hot wallet). And when transactions are done, the wallet remains in it's cold estate when separated from the internet.
When a cold wallet is connected to an internet connection, it is considered compromised even if the connection is later severed and it cannot be considered as safe anymore so sending it back to new cold wallet is the safest way.
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And when transactions are done, the wallet remains in it's cold estate when separated from the internet.
A cold wallet or airgapped wallet is one that is completely offline and never connected to the internet, do not fall for the misconception that you can connect your cold wallet to the internet 'briefly' and disconnect it later, once connected, it becomes a hot wallet and can be compromised.
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Are these HOT wallet the best option or the cold wallet are much better?
Pls state your reasons thanks.
Use hot wallet for those coins you think you can use for regular use if ever you something to buy with it or the amount you want to convert to fiat.
Rule of thumb for cold wallet is only for holding for long term, with the thought that you won't touch the wallet everytime, you can at least check the wallet's balance on other wallet for as read-only with the use of wallet address or xpub.
Most people who hold cold wallet they use it for long term transactions and not day to day transaction or frequent transaction. You are right PX-Z cold wallet are use to hold large and long term crypto, i will likely say they are large amount of crypto for future uses. It is rare to find and mostly they ain’t store at home rather being store in a vault or safe. Cold wallet are very rare and not commonly found with little value investors or traders cause they are expensive and they are use for larger and huge amount of assets.
But with the current state Hot Wallet are very common and it very easy to have and you can store a lot of assets too, but it is less secure than cold wallet but I guess each have there own unique disadvantages and drawbacks.
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need understanding when interpreting HOT wallet, because in my mind it is HOT wallet from NEar before
so far I think it is more comfortable to use a cold wallet if I want to store assets that are used as investments, where I can reduce my transactions and remember my assets to be viewed continuously,
Hot wallet is simply a wallet that is connected to the internet, such wallet should only store a small amount of your funds, money that you need for spending on the go. Anything more than that should be stored in an airgapped wallet or a hardware wallet, these wallets are not connected to the internet, so it greatly reduces the risk of your wallet being compromised.
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And when transactions are done, the wallet remains in it's cold estate when separated from the internet.
A cold wallet or airgapped wallet is one that is completely offline and never connected to the internet, do not fall for the misconception that you can connect your cold wallet to the internet 'briefly' and disconnect it later, once connected, it becomes a hot wallet and can be compromised.
Exactly, it's very important to know about this concept in order to better protect your cryptos
The sooner users know about it, the more chances they have of protecting themselves, and I still see a lot of confusion on this Hot and Cold wallet issue
Many experienced users still have very large security gaps, and many even have a cold wallet...and store the seed in a txt file on their computer ::) ::) ::)
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Many experienced users still have very large security gaps, and many even have a cold wallet...and store the seed in a txt file on their computer ::) ::) ::)
People do some really crazy things, yeah, after storing your funds offline, you also have to safely store your seed phrase that's either written on paper or engraved on stainless steel. Your seed phrase should not be stored anywhere online, some people even take a photo of their seed phrase and save it in their gallery, such things are stupid to do.
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Hot wallets are custodial wallets and they are not the best, if you're using one, then don't have all of your assets on it because you stand a chance for missing everything at any time and the worst part of it all is that you cant recover or get them all back again once gone, aside that, you can only chose to use any of such as a temporary wallet or the type that you only have a little fragment of your holdings possible for use as exchange.
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Cold wallets and hot wallets both have their different uses and applications. The choice on which particular one to make use of depends on what you intend doing with the wallet and how often you visit the wallet. For example if you intend to HODL some coins, hot wallet will be a bad choice since your assets are more vulnerable to internet threats.
On the other hand hot wallets are best for something like a commercial or business wallet where you constantly visit the wallet or spend from it since signing transactions from a cold wallet would be stressful if done frequently.
A cold wallet or airgapped wallet is one that is completely offline and never connected to the internet, do not fall for the misconception that you can connect your cold wallet to the internet 'briefly' and disconnect it later, once connected, it becomes a hot wallet and can be compromised.
Clod wallets is like a general term. I think hardware wallets and airgapped devices are more like examples under it.
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Are these HOT wallet the best option or the cold wallet are much better?
Cold wallets are much better when it comes to security and hot wallets are good for the ones who often do transactions. Someone who's investing huge sum in a crypto currency should always use cold wallets as those are very safe for storing crypto currencies, but if someone's work needs him/her to do online transactions then hot wallet is going to be a better option.
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Are these HOT wallet the best option or the cold wallet are much better?
Cold wallets are much better when it comes to security and hot wallets are good for the ones who often do transactions. Someone who's investing huge sum in a crypto currency should always use cold wallets as those are very safe for storing crypto currencies, but if someone's work needs him/her to do online transactions then hot wallet is going to be a better option.
You are right, cold wallets are safer for storing our crypto assets. While hot wallets are for transactions.
I also use both, but my largest assets are in cold wallets.
We must be careful in storing our crypto assets because there are many scammers out there.