Is HOT wallet the best for Crypto assets?

[libert19]

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.

[Mia Chloe]

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.

[Tribalchief]

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.

[KingsDen]

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.

[rizqillah]

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.

[rdluffy]

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

[gunhell16]

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.

[bitterguy28]

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

[libert19]

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.

[_act_]

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.

[KingsDen]

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.

[Stuart]

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.

[rdluffy]

...

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

[Ujok]

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.

[albon]

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.