Hot and Cold Wallet - Cryptocurrency Wiki
What is a Cold Wallet? (Crypto Wiki)
The use of cryptocurrency has given rise to the terms Hot Wallet and Cold Wallet. Both Wallet's are effectively accounts that store cryptocurrency. The difference is that a Hot Wallet is connected to the internet and can be used to make purchases, while as the cold wallet is not.
Generally, a user is going to put only a small amount of currency into their hot wallet to be used for transactions. As the hot wallet is connected to the internet hackers could potentially gain access to it and steal the currency inside it. The advantage of the Hot Wallet is that it is useable, but the downside is that it has less security.
The Cold Wallet by contrast is not connected to the internet and thus is very safe. However, money should only be moved off of it in a certain way. This makes it unuseable as a day to day transaction device but does it make good as a Savings Account.
Platforms for trading and moving currency like:
Are all hotwallets with varied security across them.
Platforms that rest on your computer like:
Dash QT Wallet
Are also considered Hot Wallets. Even though the private keys to the account are stored on your computer the computer itself could still be hacked.
Cold Wallets are basically hardware that stores codes. Most can be either plugged into a computer or simply provide visual code so that it can be typed in.
Major brands for Cold Wallets include Trezor.io, and KeepKey.
You can find the links to these brands below:
Currently we have not tried enough of these to provide a good recommendation as to which product to use.
DIY Cold Wallet - The Ice Box
We are not sure how effective this DIY ColdWallet is compared to others. But is a cool idea that at least provides some ideas as to how a Cold Wallet is constructed and used.
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