#保护你的资产

Cryptocurrency is a form of money recorded on the blockchain. Although the blockchain itself is secure as a decentralized distributed ledger, the wallets used to manage assets can be vulnerable to online attacks. Therefore, using cold wallets can provide an extra layer of protection to ensure that cryptocurrencies are not threatened by cybercrime.

In contrast to hot wallets, the main difference between the two is that hot wallets are connected to the internet, while cold wallets are not. This means that cold wallets can prevent unauthorized access, online attacks, and other vulnerabilities associated with network-connected systems.

If you are wondering under what circumstances it is advisable to use a cold wallet, the general principle for using cold wallets is: when the amount of cryptocurrency you own is significant or you cannot afford to lose your cryptocurrency, you should use a cold wallet.

If you don’t hold much cryptocurrency, it is actually unnecessary to use a cold wallet. However, if you have a large amount of cryptocurrency and store it in an online hot wallet, this is akin to carrying a large amount of cash in a crowd, which is very unsafe.

In terms of cost, cold wallets are more expensive than hot wallets (the prices of cold wallets on the market range from $79 to $255), while most hot wallets are free. Additionally, regarding usability, cold wallets require specific passwords or methods for access each time they are used, making transactions more cumbersome compared to hot wallets.

Despite this, many people are still willing to choose cold wallets for security.