How to distinguish between a hot wallet and a cold wallet for digital currency? How to choose a cold wallet?
After the rapid development of digital currency, many investors have begun to come into contact with digital currency, but there are still many people who have doubts about digital currency wallets and do not know how to distinguish between hot wallets and cold wallets. Today, I will share with you some knowledge about digital currency wallets and how to choose a cold wallet.
1. What is a hot wallet? What is a cold wallet?
A hot wallet is an application that is downloaded to a computer or mobile phone, but connected to the Internet, it is susceptible to malicious software or viruses lurking in the background.
Cold wallets use physical hardware devices to store private keys offline to ensure that assets are not stolen by hackers. It can be said that computers and mobile phones that are not connected to the Internet can be used as cold wallets.
2. What are the advantages and disadvantages of cold wallets?
Because cold wallets do not need to contact the Internet, the biggest advantage of cold wallets is security, but it also brings corresponding disadvantages. For example, some cold wallets are not convenient to create, or you need to connect to a computer through a USB interface when you want to trade. . Compared with the simple operation of the hot wallet, it will be more cumbersome to use.
3. What should I pay attention to when buying a cold wallet?
Not all hardware wallets have the same security level. It is recommended that you check the hardware wallet brand, principle, parameters and practicality in the purchase survey.
It is worth mentioning that there are many cold wallets on the market that need to be connected to a computer or mobile phone via USB, Bluetooth, etc., and the source code is not open. It is possible that illegal use codes are built into the cold wallet. In this way, hackers may even It is the cold wallet manufacturer that may upload the private key of the user’s cold wallet and steal the digital currency.
Therefore, it is best to choose a cold wallet that is not connected to the Internet or connected to electronic devices. For example, the Sallet One Cold Wallet promises to never touch the Internet, and is completely open source, accepts everyone’s supervision, and maximizes the security of users’ assets.
4. Summary
In recent years, there have been some currency theft incidents, mainly focusing on the attacks of encrypted asset management platforms, the loss or theft of personal secret keys, and smart contract vulnerabilities. Therefore, how to preserve personal secret keys has become an issue that cannot be ignored by crypto asset investors. Generally speaking, as long as the system is not physically isolated, it is possible to be compromised. It just depends on the cost of the breach and the benefits after the attack. Therefore, as long as you choose an excellent cold wallet, your digital assets can still be completely safe.
