Cryptocurrencies are valuable assets. Their owners wish to keep the funds, must use the specific tool storage — crypto.
Cryptocurrency wallet is a digital key that allows the owner to access their valuable coins and keep control over them. There are two options for storing these keys: the Internet, the so-called hot wallet, or offline, in the cold. What is the difference? What kind of purse it is better and safer? We offer you to look into the matter.
Traditional hardware wallets are devices resembling flash drives. They do not have access to the Internet; accordingly, they are impossible to crack. There is a purse of this kind, which enjoys special trust of users. It is characterized by a high degree of cryptographic security and the ability to make secure transactions. This wallet is ARCHOS Safe-T Mini.
If to speak about reliability, then in this respect the cold wallets are the best way to store cryptocurrency. Cyber criminals are not able to hack in and steal money since keys are stored offline. As a rule, hardware wallets have built-in screens, allowing you to easily verify and confirm transactions. In addition, such devices suitable for storing multiple currencies and serve as the best choice for investors with diversified portfolios.
Moreover, the hardware wallet of a new generation of ARCHOS Safe-T Mini provides enhanced protection PIN, confirm by pressing the button, creation of private keys outside of the Internet. Most importantly, Safe-T Mini allows you to regain access to your coins with a passphrase even in case of breakage or loss of cold wallet.
Hot wallets are services and applications associated with the Internet.
- Web wallets access, the user receives via the browser. In this model, service providers store information on their servers, which implies the need of trust from the user. Examples: Blockchain.com Green Address.
- Desktop wallets — downloadable software for personal computers. All data is stored on the local device, so users are responsible for their safety. Examples: Exodus, Jaxx.
- Mobile wallets — apps for smartphones and tablets. They can store the keys on remote servers similar to web wallets. You can also download like desktop wallets. Examples: Mycelium, Copay.
Means hot storage has several advantages. Almost all of them free. They are convenient and easily accessible if you’re connected to the Internet. Thus, cryptocurrency wallets with access to the network work similarly to traditional payment systems such as PayPal. In this capacity, they are ideal for day trading. Some websites and apps that support ShapeShif even offer the functionality of the exchange of cryptocurrencies.
The main disadvantage of hot wallets are vulnerable to hacks. According to the website Carbon Black only in 2018 criminals stole $1.1 billion in cryptocurrency. The center of attention of intruders — storage facilities with Internet access and exchanges, which hold assets millions of users. It is important to remember that hot wallets are vulnerable to hacking, malware and phishing schemes.
Which purse is better? Cold wallets such as Safe-T Mini — the most reliable and the best choice for people to store cryptocurrency assets for a long time, and novices alike. Do not forget the Golden rule: most of the cryptocurrency it is necessary to store outside of the Internet. It is better to take precautions than to repent later.
- Official page of Safe-T Mini
- Wallet Safe-T Mini in online shop Archos
- News and discussion on the channel Telegram