Distinguish between hot and cold cryptocurrency wallets from a security perspective

Cryptocurrency wallets can be divided into hot wallets and cold wallets based on whether they are connected to the Internet. A hot wallet can be understood as an App downloaded to your mobile phone. It needs to be connected to the Internet. There is no entity. As long as you want to use it, you need to connect to the Internet. However, as long as the network is connected, there is a possibility of being attacked by hackers, and there are considerable security risks. Recently, most of the asset thefts that have been exposed are due to the transfer of assets caused by hot wallet interaction or authorization.

A cold wallet can also be understood as a hardware wallet. It is not connected to the network and has entities. Some are similar to U disks, some are similar to bank cards, and some are like mobile phones. Because it is not connected to the Internet, even the most powerful hackers cannot invade. Even if the wallet company goes bankrupt, as long as the user’s mnemonic phrase is not lost, another brand’s cold wallet can be used to restore the account.

Cold wallets can be divided into two types, open source and non-open source. Open source means open source. If a cold wallet is not open source, or is not completely open source, then you will still have certain risks when using this cold wallet, because you don’t know that the cold wallet manufacturer is in the code What is written, whether there is a hidden code, whether there is a number, whether it is possible to upload the private key when connected to the device via Bluetooth, Wifi, and USB.

However, cold wallets are already the highest level of protection in the cryptocurrency field, and there has not been any case of cold wallet theft or theft by cold wallet manufacturers. But as a user, it is safer to choose an open source, disconnected cold wallet. Sallet One never connects to the Internet, never connects to electronic devices, and only transmits data through QR codes. Your private key will never leave the wallet. The entire transaction verification process is completed in the cold wallet itself, ensuring absolute security.