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Cryptocurrency wallets: Cold wallets vs. Hot wallets

James Donald
Cryptocurrency wallets: Cold wallets vs. Hot wallets

Cryptocurrency wallet

  • Software that stores access keys
  • Used to exchange cryptocurrencies
  • Users can view balances

Types of cryptocurrency wallets

  • Hot wallets 
  • Cold wallets

Hot wallets

  • Exists online
  • Mobile or desktop
  • Can be non-custodial or custodial
  • Suitable for active users (regular transactions)

Hot wallets: Pros

  • Highly accessible
  • Available on any internet-enabled device
  • Often free of cost

Hot wallets: Cons

  • Vulnerable to hacking
  • Technical issues

Cold wallets

  • Exists offline
  • Usually a hardware device or paper wallet
  • Suitable for long-term savings

Cold wallets: Pros 

  • Extremely secure
  • No issues involving internet

Cold wallets: Cons

  • Not easily accessible
  • Expensive 

Cryptocurrency wallet development



  • Blockchain App Factory is a top developer
  • They provide cost-effective and quality services
James Donald
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