- Hot Wallets
A bitcoin wallet that is connected online is known as a hot wallet. Hot wallets are useful because they allow you to send and receive bitcoins quickly. However, because they are accessed online, hot wallets are more vulnerable to hacking. Malware or hackers can steal your private keys from your computer if you are not cautious.
The best approach to keep your bitcoins safe when using a hot wallet is to keep your device protected with antivirus software and constantly updated. You should also encrypt your device so that no one can access your bitcoins without the password if it is lost or stolen. Splitting your money into multiple hot wallets is another technique for keeping them safe.
- Cold Wallets
A cold wallet is a cryptocurrency wallet that stores your private keys offline. Notably, cold wallets are considered more secure than hot wallets connected to the internet. Moreover, cold wallets can be paper or hardware wallets. Hardware wallets offer extra security because they’re not dependent on software quality. You can only access your funds in a hardware wallet by using physical buttons on the device. These devices also typically come with display screens and other features that make them easy to use.
