When looking into which wallet to store your coins, it's extraordinarily useful to know the difference between a cold wallet and a hot wallet. I'll explain the difference, and the pros and cons of both.
What's a Hot Wallet?
A hot storage wallet is a cryptocurrency wallet that is connected to the Internet. These are often free and easy to use, but there are have their negatives as well.
Pros
- Free
- Easy to get
- Easy to use for trading
Cons
- Lighter security than cold wallet
- Not as useful for storing large amounts
- In some cases they are custodial wallets
There are many examples of hot wallets, including mobile crypto wallets and exchange wallets. Here's 3 examples:
- Binance - Exchange
- Bittrex - Exchange
- Voyager - Mobile
Summary...
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