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What are Bitcoin cold and hot wallets What is the difference

Date:2024-07-20 18:12:09 Channel:Build Read:


The four most famous international exchanges:

Binance INTL
OKX INTL
Gate.io INTL
Huobi INTL
Binance International Line OKX International Line Gate.io International Line Huobi International Line
China Line APP DL China Line APP DL
China Line APP DL
China Line APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.


What is the difference between a Bitcoin cold wallet and a hot wallet?

A Bitcoin wallet is a tool for storing and using Bitcoin. It can be divided into a cold wallet and a hot wallet according to its network status when used.

Cold wallets are usually called offline wallets, which means that they can be offline during use. Such wallets often rely on computers, mobile phones and other hardware devices that are not connected to the Internet to run. Of course, paper or small notebooks used to record private keys also belong to the category of cold wallets. When users use cold wallets, the outside world generally cannot access the location where the private key is stored through the Internet, so accidents caused by hacker attacks or Trojan viruses can be avoided.

Hot wallets are just the opposite. During use, they must remain online. Such wallets usually appear in the form of online wallets and trading platform wallets. In other words, when you use a hot wallet to save and trade Bitcoin, the outside world can access the location where you store your private key through the Internet.

So in comparison, Bitcoin cold wallets are less likely to be hacked, which is why many regulators require trading platforms to save users' encrypted assets offline. At present, the cold wallets (hardware wallets) we commonly use are mainly trezor or ledger nano; of course, this type of wallet also has certain defects, that is, the operation process is relatively complicated, and once the cold wallet device is damaged or lost and cannot be used, your Bitcoin assets will also leave you.

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