๐Ÿ” What is the difference between a Hot Wallet and a Cold Wallet?

๐Ÿง 

When you buy crypto, the most important question you face is: Where do you securely store these currencies?

Here lies the difference between:

๐Ÿ”ฅ Hot Wallet

โ€“ Connected to the internet

โ€“ Easy and fast to use

โ€“ Suitable for daily trading

Examples:

๐Ÿ“ฑ Mobile apps โ€“ Exchange wallets (like Binance Wallet)

โ„๏ธ Cold Wallet

โ€“ Not connected to the internet

โ€“ Very secure โ€“ Protects you from hacking

โ€“ Suitable for storing large amounts for long periods

Examples:

๐Ÿ” Ledger โ€“ Trezor โ€“ A paper containing your private keys (Paper Wallet)

๐Ÿ’ฌ Summary:

โ–ช If you are trading dailyโ€ฆ use a Hot Wallet

โ–ช If you want high securityโ€ฆ store in a Cold Wallet

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