Understanding hot wallet in crypto space

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There are different types of wallet used in the crypto space and as a crypto enthusiast it's left for you to decide which wallet you feel is more secure or safe when it comes to storing your crypto asset, although in these first part I will be giving some interesting details about hot wallet, some major exchange platform prefer using the hot storage wallet while other prefer the alternate wallet which is cold wallet.

Hot wallet

Is a tool that allow crypto users to send and receive crypto base tokens, they are virtually used for storing/protecting users crypto currencies.

One unique feature about hot wallet is that hot wallet is connected to the internet while the cold wallet is not. these unique feature have made hot wallet to be vulnerable to hacking as users information can be extracted when hackers get access to someone PC or mobile device.

The biggest advantage of using hot wallet is that it facilitate users basic transaction since it's connected to the internet it helps individuals to make convenient purchase of crypto currency form other exchange platform.

Hot wallet security

security of hot wallet are solely dependant on users, since the wallet public keys and private keys are stored on the internet it security are base on users behavior on how they handle their wallet/device against hackers attack. also the wallet providing company will be playing their role by providing new updated version of the wallet so as to counter hackers phishing users.

Final thoughts

Although there are multi choice for storing crypto currency since the hot storage method can be accessed freely without initial cost of setting up, it has attracted multiple users although both hot and cold storage process have their limitations users are advise to make basic research on which wallet suit them most.