Is HOT wallet the best for Crypto assets?

[Fivestar4everMVP]

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.

[yhiaali3]

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.

[densus88]

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.

[MRY]

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.

[MUGNIA]

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,

[rdluffy]

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

[bitcoin-shark]

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

[Z-tight]

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.

[PX-Z]

...
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.

[Gposas]

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.

[ABCbits]

• 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.

[PX-Z]

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.

[Z-tight]

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.

[Nheer]

...
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.

[Z-tight]

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.