Asked: What exactly is the difference between cold wallets and hot wallets?
My answer: Large trading platforms usually manage users’ assets in two parts: hot wallets and cold wallets. Routine withdrawals are mainly paid from hot wallets. The distinction between “cold” and “hot” isn’t about what the wallet looks like, but whether the private key has ever been exposed to an internet-connected environment.
$BTC 75897.94 (-0.34%)
Have you ever learned this the hard way? Share your experience to help warn others.
My answer: Large trading platforms usually manage users’ assets in two parts: hot wallets and cold wallets. Routine withdrawals are mainly paid from hot wallets. The distinction between “cold” and “hot” isn’t about what the wallet looks like, but whether the private key has ever been exposed to an internet-connected environment.
$BTC 75897.94 (-0.34%)
Have you ever learned this the hard way? Share your experience to help warn others.
