Bitcoin Garden Forum

Cryptocurrencies => Crypto Discussion => Topic started by: riyasteve on May 27, 2019, 02:55:45 PM

Title: Cryptocurrency wallets: Hot or cold?
Post by: riyasteve on May 27, 2019, 02:55:45 PM
 Over the past couple of years, cryptocurrencies have established themselves as a reliable and alternate mode of transaction. The benefits of cryptocurrencies range from anti-forgery, low fees and instant redemption. However, this medium is not insulated from controversy. In the recent past, there were a handful of incidents which exposed the vulnerabilities in this system. The most famous example is that of Mt. Gox, where over 850,000 bitcoins were stolen or reported missing. But don’t let this discourage you from investing in this emerging field.

 Usually, cryptocurrencies are stored and transacted using digital wallets. Hence, it is essential for one to know of the different types of cryptocurrency wallets available and their uses. For starters, these wallets are broadly divided into two categories - Hot Wallets and Cold Wallets. Hot Wallets are those cryptocurrency wallets that are connected to the Internet. Similarly, Cold Wallets are those which are offline in nature.

 These two wallets bring in their own set of strengths and weaknesses to the table. Hot Wallets allow easy transactions, are easily accessible on different platforms and often a single wallet supports multiple cryptocurrencies. On the downside, Hot Wallets are very susceptible to hacks. Hot Wallets are further divided into Online Wallets, Mobile Wallets and Desktop Wallets. Popular examples of Hot Wallets include Coinbase, Electrum and Mycelium.

 Meanwhile, Cold Wallets are comparatively more secure than their Hot siblings. This advantage stems from their “offline” nature, but ironically this is also its biggest disadvantage. Cold Wallets are very difficult to use in transactions and given its offline as well as physical nature, it becomes easier to misplace these types of wallets. Cold Wallets are usually divided into Hardware Wallets and Paper Wallets, but some Desktop Wallets also fall into this category. Some popular Cold Wallets includes Trezor, Nano Ledger S and MyEtherWallet.

 By understanding the nuances between Hot and Cold Wallets, it becomes easier to know where to store your cryptocurrency. For instance, if you are a trader, it makes sense to invest in a Hot Wallet given its dynamic nature. However, if you are investing in cryptocurrencies for a long-term, Cold Wallets are the best option since they are very secure. Apart from the above available options, you can start your own cryptocurrency wallet service (http://bit.ly/2X8J391). Blockchain App Factory can help you develop a secure and reliable wallet while also providing solutions to other cryptocurrency and blockchain queries.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: vanjava on May 30, 2019, 11:15:16 AM
I use a hot wallet, because it is easier to use and free, not with a cold wallet that requires additional costs to buy another nanoledger or cold wallet. I am also a trader.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: OluwaTosin10 on June 02, 2019, 12:12:49 AM
Your type of wallet depends on your type of influence in crypto currency
A mere airdrop or bounty hunter will not see the need for a cold wallet

While a trader needs to stay safe by getting a cold wallet Trezor an example
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Synvc on June 02, 2019, 03:58:37 PM
Most people choose to use a hot wallet to save their assets
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Ghanda on June 03, 2019, 03:42:36 AM
I use a hot wallet, because it is easier to use and free, not with a cold wallet that requires additional costs to buy another nanoledger or cold wallet. I am also a trader.
Same with me guys, I also choose and used a hot wallet to save my asset.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Jan_Vl on June 03, 2019, 12:00:08 PM
I prefer a cold wallet because I need my assets to be safe
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Siffi on June 03, 2019, 01:09:05 PM
I think I prefer to use a hot wallet to store my assets, even though I use them too long and are good and safe.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: tsakf on June 03, 2019, 01:26:07 PM
Cryptocurrency hot wallets:

They are suitable, for everyday use, and doing transactions, regularly.

Cryptocurrency cold wallets:

They are like a safe, where you store your cryptocurrency, for a long time. They are safe, because they are offline, and no hacker can go for the funds. To spend cryptocurrency, from a cold wallet, you have to move it to a hot wallet.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: rituvohra01 on June 03, 2019, 06:09:07 PM
I always prefer hot wallet to store my assets. I think it is safe because we can use it in offline mode.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Obiwankenodium on June 04, 2019, 12:10:43 PM
Use Both,hot wallet for trading and short term, cold for hodl and long term.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Pelanavreo on June 05, 2019, 05:09:29 PM
the application looks good, I tried visiting the website and wanted to see this platform https://www.blockchainappfactory.com/
I've used a paper wallet and it looks cool. But an online wallet looks good when we want to trade quickly and want to send digital coins to exchange.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Zen10 on June 05, 2019, 09:26:53 PM
Most people choose to use a hot wallet to save their assets

It's probably because not many people hold a considerable amount of crypto assets.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: tsakf on June 05, 2019, 10:02:50 PM

It's probably because not many people hold a considerable amount of crypto assets.

If you gave a small amount of crypto assets, to move back and forth between hot and cold wallet, costs you blockchain transaction fees. That's why a cold wallet is used for an important to secure amount of crypto assets.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: katemi on June 06, 2019, 02:45:25 AM
Currently I still use a hot wallet, because it is constrained by the number of assets and the cost of buying a cold wallet. If I already have many assets, I will definitely buy and use a cold wallet
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: ronmonterde on June 06, 2019, 02:58:46 AM
Those who are interested with NOAHCoin can use this guide they made for their users about NOAH Wallet. Really informative! https://noahcoin.org/blog/how-noah-wallet-works/ (https://noahcoin.org/blog/how-noah-wallet-works/)
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: UnikeysTeam on June 06, 2019, 04:13:07 AM
Cold/Hardware wallet is a more secure way to store crypto asset. Please feel free to give a try on the world's first biometric hardware wallet, the UKey card! https://medium.com/@UnikeysTeam/how-unikeys-is-looking-to-change-the-game-1dfee57dd7e4
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: 717 on June 06, 2019, 06:36:09 PM
I currently use a software wallet, where we can get it for free and it's also quite safe.
Until now, my assets are still safe in the software
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: katemi on June 07, 2019, 03:39:05 PM
I use cold purses, because the security is proven and very easy to use. Until now I always use it
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: agustd0309 on June 18, 2019, 10:06:33 AM
It all depends on your requirements. Whether you’d like to spend more and be secure, or you’d like to save your money and be in constant fear of getting hacked. If it’s the former one then go for Hardware wallets, but if it’s the latter one then you can select Online wallets.

Hardware Wallets - These physical devices are the most secure wallets, being virtually unhackable and keeping your private key safe. The best part about these wallets is that until and unless it is connected to your PC for access, the device won’t work. Some of the best hardware wallets are Ledger Nano S, Trezor, KeepKey, etc.
Online Wallets - The thing with online wallets and why so many people prefer them is that these wallets can be accessed from anywhere and on any device. Plus, it’s free (unlike hardware wallets that are quite expensive). Also, they are mostly used for their in-built exchange feature, which the hardware wallets do not possess. Some popular and reliable wallets are Jaxx, Exodus, Guarda, etc.
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: Lore on June 18, 2019, 11:58:21 AM
Cold wallets more secured?
Title: Re: Cryptocurrency wallets: Hot or cold?
Post by: agustd0309 on June 18, 2019, 12:04:08 PM
Cold wallets more secured?

Yes, they indeed are. The safest wallet you'll ever find!