Cold vs hot wallets, what are they?
Wallets, don’t you just love them. From our Father’s wallets to our partner’s wallets, each holds something precious, unique, or beneficial to our lives.
A crypto wallet is very much the same thing. It stores your cryptocurrencies neatly and securely. If you check your account on ValorExchange, you’ll see that your account has three different wallets attached to it. Don’t worry, They are all free.
This article will help you understand the types of wallets, how to use them and why they’re essential.
Types of wallets
There are two types of wallets. There is the hot wallet and the cold wallet.
What is a Hot Wallet?
A hot wallet could also be called a software wallet. It can be accessed from any device with internet access, which makes it completely different from a cold wallet.
Hot wallets are excellent. On ValorExchange, you can use them to make payments, transfers, save for the future, and so much more.
What makes this a hot wallet?
It holds a set of private and public keys and can primarily be accessed with an internet connection.
What is a cold wallet?
This is the opposite of a hot wallet. It functions the same way as a hot wallet, but a cold wallet is not connected to the internet and can be accessed without it. These types of wallets come in all shapes and sizes. Some are made of paper, while others resemble USB drives.
If a hot wallet is like a mobile banking app, then a cold wallet is like a vault.
What makes this a cold wallet?
It saves your cryptocurrencies offline. It’s usually physical, like a piece of paper or USB looking device, as long as it holds the private and public keys off the internet.
Do you even need a crypto wallet?
If you feel like eventually somebody will steal your funds or you constantly have sleepless nights about your account being hacked then please put your cryptocurrencies in a cold wallet and sleep soundly.
Although be warned that if you lose a cold wallet, you’ve lost your cryptocurrencies. There is very little that can be done to recover it.
Our accounts on ValorExchange are more for those who want to use their cryptocurrencies to make payments, earn crypto, save for a future trip or tuition in school, etc. We want you to be able to use your cryptocurrencies to the fullest.
If you want to know how to make the most of your cryptocurrencies, join us on Telegram. You can get unlimited access to information, resources, etc., that you can use to stay informed throughout your crypto journey.
There are hot wallets, and there are cold wallets. Some people use one while others use both. Create an account with us and experience how to use a crypto wallet first hand.