If you have spent some time in the cryptocurrency space you possibly have heard of hot and cold wallet. In order to keep this blog short and to the point-cryptocurrency wallets keep your private keys – the passwords that give you access to your cryptocurrencies – safe and accessible, allowing you to send and receive cryptocurrencies like Bitcoin or Binance. They come in many forms, from hardware wallets like Trezor (which looks like a USB stick) to mobile apps like Metamask, which makes using crypto as easy as shopping with a credit card online.
Why are crypto wallets important?
Hot wallets are connected to the internet and are more vulnerable to online attacks, but it’s faster and makes it easier to buy or sell cryptocurrency. A cold wallet is typically not connected to the internet, so while it may be more secure, it’s less convenient. Using a mixture of cold and hot wallets is the best solution to keep your cryptocurrency safe. It’s important to state that not all cryptocurrency wallets are compatible will every cryptocurrency created. For example, the Cross Chain Farming token is not available on the Coinbase wallet or the Trezor wallet. People should never keep all their cryptocurrency on one exchange, hot or cold wallet.
To further understand the difference between public and private keys please watch the video below:
NEVER EVER GIVE ANYONE YOUR PRIVATE KEY FOR ANY REASON!
