Which Wallet Is Best: Online or Cold Wallet?

Cryptocurrency investors can choose between an online (hot) wallet and a cold wallet. Read what to consider and find out which would be the best option for you.

Andrew Moran
By Andrew Moran
Edited by Taj Schlebusch

Published June 12, 2021.

Let's differentiate the two.

An online wallet (hot) is connected to the internet. A cold wallet account is stored on an offline means.

Now, how do you determine which is safer for your needs?

Safety is a Priority

Since the online wallet is connected to the internet, your digital assets are vulnerable to online attacks. The crypto industry is regularly prone to cyber infiltration, so it is a common threat.

Because your cold wallet is not connected to the online world, you are far more secure. The crypto funds are sitting in a wallet unable to be accessed by anybody.

Does Convenience Matter?

A hot wallet makes digital spending and transactions a lot faster and more efficient because it is already connected to the internet. Therefore, you can buy, sell, spend, and trade your crypto.

A cold wallet, on the other hand, is not as convenient since you have to go through the process of reconnecting.

What is the Best Option?

Industry experts recommend that traders and general crypto holders use cold wallets to store their bitcoins, litecoins, dogecoins, and any other type of virtual token. You will have peace of mind that your digital currency will be there when you wake up.

And, who knows? Perhaps it will have increased in value when you open your eyes and log in!