“Cold” crypto wallets: pros and cons
What are the pros and cons of a "cold" crypto wallet? For what purposes are they needed?
“Cold” crypto wallets and their advantages
1. The most important advantage of a cold wallet is its security. By their very nature, cold wallets store cryptocurrencies outside the network and the Internet. Usually these are small devices similar to flash drives. Accordingly, if they do not have access to the network, then hackers will not be able to get to your funds. Cold wallets are the safest and most reliable way to store assets in the long term.
2. Cold wallets have a backup feature. This means that theoretically you can restore access to it. However, this is not always the case.
3. The wallet is completely in your hands. Its performance does not depend on anyone. You will not lose your funds just because the company that issues the crypto wallet decides to close and leave the market.
Disadvantages of “cold” crypto wallets
1. “Cold” cryptocurrency wallets are less convenient to use than, for example, hot ones. They are clearly not suitable for fast trading. Since they are offline, in order to access their assets, additional time must be spent connecting to the computer. In addition, they are more difficult to use, especially for inexperienced users.
2. Cold wallets are usually paid. You will have to pay to use such a wallet. Not all users will like this additional cost either.
3. When you first connect, you need to spend much more time in order to set up and put the cryptocurrency there. If the installation of “hot” wallets is extremely fast and intuitive, then with “cold” counterparts everything is much more complicated