To buy bitcoin is easy, but the security of BTC is a hard process. The security of bitcoin is based on the choice of wallet. Today we will discuss the choice of wallet. I will elaborate on the difference between hot and cold wallets.
Hot wallets are those wallets that work on the mechanism of online storage. This technique is the basic and initial technique to store bitcoin. Moreover, you cannot spend bitcoin or any other cryptocurrency without hot wallets. Because hot wallets are the only source to make online transactions. However, hot wallets are considered less secure than cold or deep wallets. The chances of hacking increase when using hot wallets. Hackers can find an online path to reach your wallet address keys. People short term storage hot wallets are suggested because it is a hard process to send bitcoins from offline to hot wallets.
Every hot wallet has their own security preferences. The security of wallet depends on the manufacture of that wallet, moreover cheap wallets can cause lose of money. Below here I will share a list of some hot wallets that are best according to my personal experience.
As I have mentioned above that hot wallets are online wallet. These wallets are easy to manage and if you want instant exchange services hot wallets have the option to spend Bitcoins instantly. If you don’t want to store bitcoins for the long term you should choose hot wallets. The process of storing Coins in It is easy. You can transfer your Digital money to any other wallet in no time. Keep in mind that these online wallets are risky and less secure than offline wallets.
The cold wallet uses an offline storage mechanism to store digital currency. These wallets are more secure than hot wallets. Some cold wallets use extra secured features that are breakable. No one can break the security of it. These wallet use cut out internet method to store bitcoins. Cold wallets further divided into subcategories. These categories include BTC paper wallet, Hardware wallets, and deep cold storage. paper wallets are simple papers with private keys and barcode printed, you can use the best paper to reduce the risk of damage to the paper. Hardware wallets are available on the different websites you have to buy hardware device where you will be able to store your wallet keys. Deep cold storage mechanism refers to store hardware wallets in the locker.
No doubt cold wallets are safer than hot wallets. The basic reason for that: cold wallets store BTC far away from the internet and computers. which keeps hackers away and no one can access your private keys except you. Hot wallet store keys online and the chances of the hack are likely higher in online storage. Both have cons and pros. Both the methods are good according to the situation. Like, cold storage is the best option for storing bitcoin for a long time, while a hot wallet is ideal for spending BTC on regular basis.
I have heard this question multiple times that which is the best cold wallet for the storage of cryptocurrency. If you think you can keep your papers in a secured place paper wallets are the best cold storage wallet. The reason behind this is that you have to invest a very less amount to get a paper wallet and you can keep it anywhere you want. Hardware wallets are no doubt equipped with great security systems but these wallets are costly. If you can afford still you should use paper wallets as these wallets are using no technology to store coins. hardware wallets are using technology.
Many wallets have the ability to store more than one cryptocurrency. Different hot and cold wallets are designed to keep different digital coins in the same wallet. Below here I have enlisted the wallet that is the best for multi-cryptocurrency wallets according to my knowledge and experts' views.