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Glossary

Hot Wallet

November 21, 2023 - Around 1 mins mins to read

Understanding Hot Wallets

A hot wallet is a specific type of cryptocurrency wallet designed for storing cryptoassets and is connected to the internet. Unlike offline cold wallets that utilize cold storage, hot wallets are constantly connected to the internet. Cold storage refers to the practice of keeping cryptoassets offline, away from any internet connection, in order to enhance security. In contrast, hot wallets are connected to the internet, providing easy access to cryptoassets for various transactions and activities. It is important to note that while hot wallets offer convenience, they may also pose higher security risks compared to cold wallets.

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Author

Coincu

Glossary

Hot Wallet

Understanding Hot Wallets

A hot wallet is a specific type of cryptocurrency wallet designed for storing cryptoassets and is connected to the internet. Unlike offline cold wallets that utilize cold storage, hot wallets are constantly connected to the internet. Cold storage refers to the practice of keeping cryptoassets offline, away from any internet connection, in order to enhance security. In contrast, hot wallets are connected to the internet, providing easy access to cryptoassets for various transactions and activities. It is important to note that while hot wallets offer convenience, they may also pose higher security risks compared to cold wallets.

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