THE HOT WALLETS IN DIGITAL BLOCKCHAIN

Hello to everyone in this wonderful community today and on this great platform at large today. I greet you all in good spirit and I want to believe that we all are doing just great today, and if so we give God the praise for the sustenance of life and good health.

I welcome you to yet a wonderful Monday and a new week before us all this day. I want to believe that we are having a good time with family and friends as regards to the Eid celebration. We thank God for such a wonderful period as this.

Today, I am here again to discuss with you all regarding an amazing topic that I have come up with and I have titled this discussion to be THE HOT AND COLD WALLETS REGARDING CRYPTOCURRENCY.

Not quite long, we had an amazing discussion as touching to the various types of wallets in cryptocurrency and me managed to see Custodial wallets ans the Non-Custodial wallets. We also went further to discuss what they are.

On that note, we will be talking about the Hot wallets for today, and when next I am here, we will talk about the cold wallets. As such, I urge you all to sit tight and relax while I begin the discussion for today as I begin. I wish you a happy reading!

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In cryptocurrency, we already talked about the different types of wallets and we all know what they mean and how they are being used in the digital currency world.

A recap on that is that, the Custodial wallets are wallet that are controlled and maintained by the given exchange platform, as such, they are responsible for the safety of your funds since they have charge over the assets in your wallet.

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The Non-Custodial wallets jus5 as I have said previously, are wallets that are built on a decentralized system of operation. Here the user is technical responsible for his/her assets and it is the responsibility of the user to keep the wallet safe from fraudulent activities as though the wallet possesses seed phrases that are expected to be kept safe by the user.

This brings us down to the discussion for the day. The hot and cold wallets are unique in their own way and we will be talking about them one after the other.

HOT WALLET

The Hot wallets are considered to have an automatic connection that links them directly to the web. They are typically located on the internet and are mostly accessible via browser extensions. Some browsers enables the download of wallets extensions which allows for the connection between a web3 platform and the wallet extensions.

Hot wallets are very conducive and cool when in use. They connect faster as though they have direct link to the internet. They are regarded as software application wallets as they can not be touched or felt. They are called Hot wallets because they are built on the software, as such they keep your funds safe since a user has the seed phrase that enables one to access the funds in the wallet.

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A major set back regarding the Hot wallets is that, they are highly volatile to attack. They can easily be jeopardized especially when a user connects his wallets to a wrong platform or when a user mistakenly grant access to an incoming permission request to connect to the said wallet.

When the request to access the wallet is granted unknowingly, the funds in the wallet can be taken out immediately since the owner has granted the permission already. This is why it is always advisable to checkmate the request regarding wallets connection on our wallet to avoid a case of fraudulent activity, thereby exposing our assets to scammers.

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CONCLUSION

To rap it all up, I will like to say that the distinctive feature regarding the Hot wallets is that it is easy to operate and one can perform transactions very fast and it is efficient. It is highly convenient to use as all we need do is to just connect to the internet and we are automatically good to begin our operations.

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The sad part is that, as a software based application, it is pruned to get hacked by scammers and there are different ways through which they can hack a user's wallet. A few ways are through clicking of unverified links from unknown sources, granting access to platform that always request for wallet connection to access the platform, and so on.

We should all be careful when making use of Hot wallets for our connections. Thank you all for having me here today. I look forward to discussing with you all as soon as possible but for now, I say goodbye!