HOT WALLETS vs COLD WALLETS

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if you are new to crypto

it's imperative to learn the basics of

securely storing your cryptocurrency

and if searching for this you've spent

some time on the various online

cryptocurrency forums

you've probably heard about the

never-ending war between hot wallets

vs cold wallets the ongoing debate of

which is better

hot storage or cold storage seems like

one that will never end

in this video we will introduce you to

hot wallets and cold wallets

and explain the differences between them

to help you choose a wallet that's right

for you

but before we start i would like you to

subscribe to my channel and hit the bell

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from my side now let's understand

what is a cryptocurrency wallet

a cryptocurrency wallet is a method of

storing cryptocurrency

the term wallet might be a bit deceptive

as it doesn't house cryptocurrency

tokens in the same way that a normal

wallet does for your money

a cryptocurrency wallet stores both the

private and public keys of a

cryptocurrency user

to a point of safety that no one can

gain access to their tokens

without permission this means that if

you have lost access to your own key

you will be locked out and will not be

able to access your tokens at all

hot wallets hot wallets are the most

common types of crypto wallets

because they are simple to set up and

easy to use

when you create an account on an

exchange download a mobile wallet

or download a desktop wallet on your

laptop you are creating

a hot wallet hot wallets are meant for

everyday cryptocurrency users

as hot wallets are connected to the

internet you can seamlessly make crypto

transactions with the clicks of a few

buttons on your phone

or computer while hot wallets stand out

for their

ease of use they have one major drawback

security therefore storing a large

amount of digital assets in a hot wallet

is not advisable as it leaves your funds

exposed

to potential security threats such as

cyber theft

cold wallets cold wallets are considered

the more secure cryptocurrency storage

solution

as they are not connected to the

internet you

only connect your cold wallet to the

internet when you want to make a

transaction

hardware wallets and paper wallets are

both cold wallet options

however hardware wallets are more

popular as they are easy to use

and come with customer support provided

by the manufacturer

hardware wallets use a physical medium

typically in the shape of a usb

stick to store the wallet's private keys

making them

de facto unreachable to hackers or other

malicious parties

to store crypto in your hardware wallet

you send it from a hot wallet to your

hardware wallet's public address

conversely if you want to send crypto

from your hard wallet to another address

you connect your hardware wallet to the

internet via the wallet's dedicated

software

and then sign the transaction with your

private key

paper wallets function similarly as

hardware wallets

however paper wallets are pieces of

paper that contain a public wallet

address

and a private key the main drawback is

that they are impractical for everyday

crypto usage

as it is more cumbersome to send crypto

from a cold wallet

this was all for this video we tried to

shed light on the benefits and working

of both hot and cold wallets

which one to use is entirely your

discretion

if you like this video please don't

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