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Types of Wallets and Their Use

 
 
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Types of Wallets and Their Use
by timeii afina - Friday, January 31, 2020, 12:31 PM
 

Hot Wallet vs. Cold Wallet

The difference between these two types of crypto wallets is straightforward.


A hot cryptocurrency wallet only works with the connection to the internet, while a cold Bitcoin wallet works offline. However, there is a little more to the difference between the two types of virtual wallets.


As a hot crypto wallet operates within the framework of the internet, such Bitcoin wallet is vulnerable to different types of attacks. When you work with a hot best wallet for btc, there is always a risk of your data being stolen. At the same time, such wallets are the primary choice among users. Exodus, Trustee and Electrum are such wallets.


A cold Bitcoin wallet is used for “cold” storage of cryptocurrency and therefore have a higher level of protection.


The type of virtual wallet you choose entirely depends on your needs. If you need to make a lot of small transactions, a hot wallet is a better choice for you. On the contrary, if you need to store vast amounts of a cryptocurrency over a long period, it makes sense to choose a cold wallet with a higher level of security protocols.


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