Hot vs. Cold Wallets: Where’s Your Crypto Safest?

If you’re just getting started with crypto and trying to understand all the jargon, you’ve probably heard about wallets.

Hot wallets, cold wallets, hardware wallets, and all the other things

It can be overwhelming at first, as it seems that you need some kind of tech degree to start buying and storing crypto.

But the entire conversation boils down to one simple question — how close do you want your money to be to the Internet?

What Is A Crypto Wallet?

In your regular wallet, you would hold your cards, cash, or coins; they would be with you personally. However, your crypto wallet doesn’t actually hold your coins inside; it just stores the digital Keys you need to access your crypto on the blockchain.

Whoever has access to the keys owns the crypto within the wallets.

It’s similar to a PIN on your debit card. Without the right PIN, you can’t withdraw money from your account, even if it’s your own account.

However, unlike in a bank, where you can circumvent this by choosing the “forgot PIN” option, in digital wallets, there is no such option. If you lose your PIN, you will lose your crypto forever.

Hot Wallets Are Like Cash In Your…