Leather, Cloth, Nylon...Hot? There’s more to wallets than material, and it could change the way you store your crypto.
Hot wallets, cold wallets, what’s the difference? Not too long ago, no one really cared. Then the Tokyo based exchange Coincheck became the victim of the largest cryptocurrency heist in history. Hackers disguised themselves as users and stole 58 Billion Yen of NEM, a type of cryptocurrency. Not only had coincheck not enabled two factor authentication, but the stolen money was only being kept in hot wallets. Luckily, cryptocurrency wallets have come a long way since then as far as security goes.
But what’s the difference? Basically, a hot wallet is connected to the internet, and cold wallets are offline. Thus, money stored in hot wallets are way easier to use on a regular basis because of how much more accessible they are, thanks to that internet connection. These are way more useful for trading because you can pretty much access your currency anywhere in the world, as long as you have an internet connection. However, cold wallet platforms are generally considered more secure, and much harder to access for standard trading since they exist in an offline space. Still, hot wallets are way more commonly used. With the standards for security on wallets today, even hot wallets are well protected.
You can think about it like a checking account and a savings account. Nothing wrong with having both! Keep the large amounts in the cold wallet, but keep enough in a hot wallet to be able to use high frequency trading platforms like BXB exchange. Considered one of the most secure trading platforms out there, they will not only provide you with a trustworthy cryptocurrency platform; they also make trading fun. If you were looking for a way to start trading cryptocurrency, then downloading this app is probably the best thing you’ll do all week.