Keeping Your Bitcoins Safe: Hot Wallets vs. Cold Wallets
There are basically two general types of wallets to keep your bitcoins, and other cryptocurrencies, safe. There are cold wallets and hot wallets. In this article, you’ll find out the pros and cons of each type of wallet so you can make an informed decision when choosing which wallet to go for. Hot Wallets Hot wallets are called hot because they are connected to the Internet which generally means it’s easier for hackers to hack into and steal your valuable coins from you. Examples of hot wallets include those free wallets at your favorite bitcoin exchange website like Coinbase or Kraken, and mobile app wallets. Desktop wallets are another form of hot wallet, especially if you install it on a system that’s connected to the Internet. However, you do have control over your private keys, and you can encrypt your wallet to prevent hacking attempts. The only downside to desktop wallets is if your computer gets destroyed or stolen, then you can pretty much say goodbye to your bitcoins. There h...