You often hear people say, “Keep large amounts in a cold wallet.” What do “cold” and “hot” actually mean?
Here’s how I understand it: the difference between “cold” and “hot” isn’t the form the wallet takes, but whether the private key has ever been connected to the internet.
The coins themselves are always recorded on the blockchain; what a wallet actually stores is the private key that controls the assets.
My approach: keep assets I don’t plan to touch for a long time in a cold wallet, and keep only a small amount for everyday use in a hot wallet.
Many people keep their long-term holdings of $BTC in a cold wallet and leave what they need for daily use in a hot wallet. Currently 83064.
Make your own decisions when buying and selling; don’t blindly follow others.
Here’s how I understand it: the difference between “cold” and “hot” isn’t the form the wallet takes, but whether the private key has ever been connected to the internet.
The coins themselves are always recorded on the blockchain; what a wallet actually stores is the private key that controls the assets.
My approach: keep assets I don’t plan to touch for a long time in a cold wallet, and keep only a small amount for everyday use in a hot wallet.
Many people keep their long-term holdings of $BTC in a cold wallet and leave what they need for daily use in a hot wallet. Currently 83064.
Make your own decisions when buying and selling; don’t blindly follow others.