What is a Cold Wallet?
Cold Wallet is one that is not linked to the internet and so has far less of a threat of being hacked. These wallets go by a few other names: offline wallets or hardware wallets.
When using cold storage, a Cold wallet is kept on a platform that is not linked to the internet, shielding it from hackers, and other threats that a system that is online is vulnerable to.
Having a Cold wallet is unnecessary. You can purchase, sell, trade, stake, and store bitcoin without needing to acquire a hardware wallet.
It’s quicker and simpler to trade or spend cryptocurrency using a Hot Wallet, which is linked to the internet and might be exposed to online assaults, which could result in stolen cash.
Though potentially more secure, a Cold Wallet’s lack of internet connectivity also makes it more inconvenient to use.
Some examples of Cold Wallets are Ledger Nano X, Trezor Model T, and CoolWallet Pro.
Related educational contents:
What are Digital Wallets?
What is a Hot Wallet?
What is a Cold Wallet?
What is a Single-sig Wallet? (coming soon)
What is a Multi-sig Wallet? (coming soon)
Multi-sig for teams (coming soon)
Single-sig VS Multi-sig Wallet & MPC VS Multi-sig Wallet (coming soon)
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