Cold and hot wallets

💼 A crypto wallet is a tool (“shell”) with a familiar and user-friendly interface that can be used to communicate with the blockchain network.
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🔥 A “ hot “ wallet is any type of wallet that is connected to the Internet.
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For example, when you create an account at an exchange and send funds to your account, you make a deposit to the exchange’s “ hot “ wallet.
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This type of wallet is quite easy to set up, and also provides quick access to your balance, which makes them convenient for traders and other regular users.
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“Cold” wallets do not have an Internet connection. Instead, they use a physical medium to store the keys offline, making them resistant to hacking. Thus, this type of wallet is a more secure alternative for storing your coins.
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This method is also known as “cold storage” and is particularly suitable for long-term investors (holders).
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Each type of wallet has its own advantages and disadvantages, so it is very important to understand how they work before moving on to using them.