To improve your local-language experience, sometimes we employ an auto-translation plugin. Please note auto-translation may not be accurate, so read original article for precise information.
What is Cold Wallet?
Understanding Cold Wallet
Taking your holdings offline protects them from hacking and online attacks, but you risk losing them. This type of storage has no backup; if you forget your wallet, you lose access to your investments. Cold wallets can also cost up to $200. (though there are definitely cheaper options).
While hacking is considerably more difficult with a cold wallet, it is still possible. DeCicco advises buying your hardware wallet straight from the manufacturer rather than secondhand, as the device may have been changed with in a way that makes it vulnerable.
If you intend to buy and store cryptocurrencies for an extended period of time, cold storage may make more sense. However, if you want to buy and trade cryptocurrencies, or if you’re not completely sold on bitcoin and think you might want to cash out your holdings after a while, a hot wallet — or even leaving it on an exchange — may make more sense.
Read related articles:« Back to Glossary Index
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.