Hot or cold wallet. Which should I choose?

[natsuko]

Many here on the forum recommend getting a cold wallet, but I don't understand why? Do hot wallets get hacked so often? Has anyone had any experience with hot wallet hacking?

 

[PDLProfit]

A cold wallet is suitable for storing assets. Imagine that your cold wallet is a safe deposit box where you keep your money, and your hot wallet is your card that you pay with every day.

I think this analogy will perfectly illustrate to you why you need each of the wallets.

 

[natsuko]

A cold wallet is suitable for storing assets. Imagine that your cold wallet is a safe deposit box where you keep your money, and your hot wallet is your card that you pay with every day.

I think this analogy will perfectly illustrate to you why you need each of the wallets.

Ok, but if I need to make a transaction, I still need to connect my cold wallet to the internet, am I right?

 

[joseph15]

Ok, but if I need to make a transaction, I still need to connect my cold wallet to the internet, am I right?

You can receive funds without connecting to the internet, but to send funds you'll need to connect, yes.

 

[liulala]

For everyday use, trading, or small amounts, a hot wallet provides the necessary convenience and quick access.
For securing large amounts of cryptocurrency or long-term investments, a cold wallet is more suitable due to its enhanced security features.

 

[natsuko]

You can receive funds without connecting to the internet, but to send funds you'll need to connect, yes.

Got it, maybe then I'll buy a cold wallet and only use it to receive

 

[PolskiKrot]

Cold wallets are safer because they keep your private keys offline, away from online threats. Hot wallets, being online, are a bigger target for hackers. Hacks like the infamous Poloniex incident where $114 million was stolen, show the risk. There are several forums on the Internet where the withdrawal of funds from other people's accounts is discussed and they are not located on the darknet! . Cold wallets minimize these dangers.

 

[natsuko]

Cold wallets are safer because they keep your private keys offline, away from online threats. Hot wallets, being online, are a bigger target for hackers. Hacks like the infamous Poloniex incident where $114 million was stolen, show the risk. There are several forums on the Internet where the withdrawal of funds from other people's accounts is discussed and they are not located on the darknet! . Cold wallets minimize these dangers.

It's a pretty big risk. I will only use cold storage for large amounts of money.

 

[alurosu]

If you have an updated phone, a mobile wallet is good enough for 99% of people. By this I mean a fairly new phone that receives constant security updates from the provider.

Most hacks are user related, you get fooled in some way. The tech is safe

 

[BugByte]

Cold wallet is the safe choice, with hot wallet you can easily sign malicious contracts without noticing

 

[natsuko]

If you have an updated phone, a mobile wallet is good enough for 99% of people. By this I mean a fairly new phone that receives constant security updates from the provider.

Most hacks are user related, you get fooled in some way. The tech is safe

Are the hacks being done because of vulnerabilities in the phone? I thought it was due to good codephrase selection.

Cold wallet is the safe choice, with hot wallet you can easily sign malicious contracts without noticing

Only if you're receiving

 

[alurosu]

Are the hacks being done because of vulnerabilities in the phone? I thought it was due to good codephrase selection.

You are correct. Most times users enter the passwords or seed phrase in shitty websites / apps. It's almost always a human error. Very few are tech related.

 

[natsuko]

You are correct. Most times users enter the passwords or seed phrase in shitty websites / apps. It's almost always a human error. Very few are tech related.

A man must be very naive and inexperienced to enter a seed phrase on some unfamiliar site...