Everyone need a wallet to store their money, I have a leather wallet for my Ringgit Malaysia that has been using for 5 years now. For crypto, I have hot wallet at the moment and may own a cold wallet in near future.
Hot wallet ?? ... is there a cold wallet too?
Yes, yes they do have.
- Hot wallet ?
-It is a crypto wallet that is always connected to the internet and cryptocurrency network. Thus you can always access it for DEFI or peer to peer transfer.
- Easy access to internet with your fund.
- Since it connected to internet, it easily prone to fund stolen by any unethical hackers.
- You need to write it down manually on a paper for the seed phrase.
- Cold wallet ?
- It is a crypto wallet that is not connected to the internet which is less risk to get fund stolen by any unethical hackers.
- Some wallet has the similar size as pendrive which is much portable to be carried.
- Some cold wallet do not have the option to stake currency.
- The most obvious biggest drawdown is that do not loss or damage your cold wallet. Hot wallet content can be retrieve with your private key or seed phrase.
So, which wallet work best to you? It depends..
If you always wanted to be connected to perform DEFI, include trading and staking... a Hot wallet is the gem.
For cold wallet, I would like to store those asset that are non-inflationary such as Bitcoin or other currency with tokenomics that worth to hold long term.
What are the cold wallet product ?
- Ledger wallet
- Safepal wallet
- Cool wallet
.. the list goes on.
Kindly review the product before purchase.