Introduction & the difference between Crypto Hot Wallets vs Cold Wallets

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Assalam-o-Alaikum Steemians !

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I'm @moneyster, a professional level Cryptocurrency investor and an analyser. Today I thought to share my Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community

Introduction & the difference between Crypto Hot Wallets vs Cold Wallets.

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Today, I hope to discuss the difference between Crypto Hot Wallets vs Cold Wallets as the main topics and further I wish to explain a sort of hot wallet, the Binance hot wallet.

In addition to that, I would like to discuss how safe Binance hot wallet, which is still considered this hot wallet, is to retain our crypto. So, as the first impression, let's talk about Cold wallet.

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What is a Cold Wallet?

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Actually, a cold wallet can be defined as the safest method to store our Crypto Coins or Tokens. It can be said that it exists as a credible concept among many people. Because we are able to store our Crypto Coins or Tokens in these Cold wallets in an offline manner. Therefore, we can hold and bring our Crypto from one place to another place without having an internet connection. There are two main types of Cold wallets: Paper wallets and Hardware wallets and this paper wallet methods are one of the most commonly used methods of writing our active key on a piece of paper.

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Going beyond this traditional method, it is now more common to use a more advanced method, the hardware wallet. The image I have inserted on the left is a type of Hardware wallet. It is like a USB flash drive that we use to store our personal data or documents. However, these Hardware wallets are also encrypted using a customized password. Therefore, even if you lost your Hardware wallet, nobody can open it without knowing the actual password of that drive.

What is a Hot Wallet?

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A hot wallet is an account that generates an active key that is available online or can be called a wallet where you can log in to that account and deposit crypto using the password we provided. The image I have inserted on the right is a type of hot wallet that is knowns as the Binance hot wallet. Many people think that these hot wallets are very unsafe to store our valuable Crypto coins. That's not really 100% correct as most of our Binance hot wallets are misled by our own shortcoming.

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As an example, if we are using cracked software or applications, there can be some ransomware or malware which reflects our personal data such as hacking our important login passwords or bank logging information. So, we must take corrective action ourselves to avoid such situations.

Difference between Crypto Hot Wallets vs Cold Wallets

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As I mentioned above, there is a huge difference between Hot Wallets and Cold Wallets. Below I have included some major differences in a format of a Table. So, I think you are already acquainted with these facts.

CRYPTO HOT WALLETS	CRYPTO COLD WALLETS
We need an internet connection to store or bring our Crypto from one place to another place.	We don't need an internet connection to store or bring our Crypto from one place to another place.
We have to protect our login details in a very safe manner as it is easy to hack.	Very difficult to hack as it always works as an offline device.
We can get some interest in storing some of our Crypto Coins or Tokens	We can't get an interest in storing our Crypto Coins or Tokens in a Hardware wallet
We are able to explore our Coins or Tokens from any device or any place.	We need the exact hardware wallet to explore our Tokens or Coins

I have studied the below-sourced art to further study these topics and I have explained all the above facts in my own words.

• Source 1

• Source 2

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Thank you all....!