What is the difference between a hot wallet and a cold wallet when storing my cryptocurrency investments like Bitcoin online or offline (e-commerce)?
A hot wallet is a type of cryptocurrency wallet that is connected to the internet.
Hot wallets are convenient for making quick transactions, but they are also more vulnerable to hacking and theft due to their connection to the internet. Hot wallets are typically used for day-to-day transactions and smaller amounts of cryptocurrency. A cold wallet, on the other hand, is a type of cryptocurrency wallet that is not connected to the internet.
Cold wallets are considered more secure than hot wallets because they are not exposed to potential hackers or malicious software. Cold wallets are typically used for larger amounts of cryptocurrency and long-term storage. They can be stored either online or offline (e-commerce).
Offline cold wallets can be stored on a USB drive, paper wallet, or hardware wallet. Online cold wallets can be stored in an online exchange or other online storage service.
