You often hear people say, “Keep large amounts in a cold wallet.” But what exactly is the difference between cold and hot wallets?
First, the definition: If you enter a hardware wallet’s recovery phrase into a phone or browser extension wallet, the private key is now on an internet-connected device, so that wallet is no longer cold.
Why? The difference between cold and hot wallets isn’t their form, but whether the private key has ever been exposed to the internet.
Many people make a habit of keeping the $BTC they plan to hold long-term in a cold wallet, and what they need for everyday use in a hot wallet.
Don’t rush to click unfamiliar links, and check the details carefully before signing.
First, the definition: If you enter a hardware wallet’s recovery phrase into a phone or browser extension wallet, the private key is now on an internet-connected device, so that wallet is no longer cold.
Why? The difference between cold and hot wallets isn’t their form, but whether the private key has ever been exposed to the internet.
Many people make a habit of keeping the $BTC they plan to hold long-term in a cold wallet, and what they need for everyday use in a hot wallet.
Don’t rush to click unfamiliar links, and check the details carefully before signing.
