Is HOT wallet the best for Crypto assets?

[Gposas]

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.

[Charles-Tim]

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.

[0t3p0t]

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.

[Hatchy]

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.

[TomPluz]

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.

[Kemarit]

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.

[Azharul]

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.

[Charles-Tim]

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.

[bayu7adi]

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.

[Findingnemo]

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.

[hugeblack]

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.

[Gposas]

 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.

[Gposas]

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.

[Gposas]

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.

[Charles-Tim]

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.