Bitcoin cryptocurrency is one of the most known digital currencies of this century has gained a lot of public attention in very small time duration. You might be thinking about buying a bitcoin cryptocurrency and if you are planning to buy a major portion of a bitcoin cryptocurrency you must have a bitcoin wallet. A Bitcoin wallet can be of two types: it can either be a cold wallet or it can be a hot wallet.
What is Bitcoin Wallet?
A Bitcoin wallet is a digital pocket used for storing and securing Bitcoin and other cryptocurrencies. All types of Bitcoin wallets have their own importance. The following article is a comparative analysis of both the Bitcoin wallets.
If you are really thinking about practically buying a bitcoin to the currency then we have a gift for you in the form of this paper which elaborates about all the best rated Bitcoin wallets that are available for the Bitcoin users.
Bitcoin Cold Wallets
Bitcoin cold wallets are a type of cupboard that is hidden in the basement of your house and is not easy to approach by hackers or thieves. The cold wallet is an offline wallet that has no connection with the internet and online services. Bitcoin cold wallets are more protective and can last longer that can provide you with more secure and safe services.
Bitcoin cold wallets are recommended for you if you are planning to hold and secure your Bitcoin cryptocurrency for a longer duration of time. This is also recommended even in countries like Denmark, where people prefer to open a bitcoin custodian wallet as opposed to a bitcoin cold wallet.
There are a lot of cold wallets but some of them are mentioned below.
Ledger Nano X
This cold wallet is one of the most top rated and secure Bitcoin wallets till date. This wallet is developed by a company which is very professional in making Bitcoin storage devices.
This Bitcoin cold wallet is a very significant offline key that makes your Bitcoin very secure. This Bitcoin wallet is a type of hardware wallet that is used to place and secure Bitcoin digital currency.
On the other hand Bitcoin hot wallets are online wallets that are more easy to use but very less secure. Bitcoin online wallets for the hot wallets are used usually for short term storing of Bitcoin cryptocurrency or its portions
Bitcoin Hot Wallet
Bitcoin hot wallets are usually used by people who have to use Bitcoin cryptocurrency on a daily basis and have to transfer and receive fractions of Bitcoin continuously. These wallets are more prone to hacking and other malicious activity e that why they are not preferable or recommended for long term use.
If you are looking for a storage place where you can keep your Bitcoins for a short duration of time ZenGo is best for this purpose. This is a type of online or what wallet that provides you with the facility to use your Bitcoin cryptocurrency on a daily basis. This wallet is very simple to use but on the other hand has a very less security.
Which is Better?
In a more understandable way you can say that a bitcoin cold wallet is like a savings account while a bitcoin hot wallet is more like a current account that is used for daily purposes. The only difference between your bank accounts and Bitcoin hot and Cold wallets is that you are the executive and controller of your Bitcoin wallets unlike your bank accounts.
If you have 7000 gold coins and you keep them in your pocket and go out for a walk the chances of robbery are very high. The best way to secure your coins is to keep them locked in your home or briefcase. Same rule is applied to the Bitcoin wallets and cryptocurrency. As Bitcoin is present on the Internet the chances of stealing are very high that’s why it’s very important to secure Bitcoin in a very well guarded place.
Point to Remember
Investing money in Bitcoin cryptocurrency is not a game of amateurs. It is very important to choose and select your Bitcoin wallet wisely so that you can avoid any uncertain circumstances.
Summing this all up we can say that Bitcoin cryptocurrency provides you with a lot of benefits and to avail these benefits in a more productive way you have to create a bitcoin wallet account where you can store your Bitcoin cryptocurrency. Both hot and Cold Bitcoin wallets have their own significance and it all depends on your priority and purpose of using the wallet.
If you are looking for a long term and secure Bitcoin wallet then you should choose Bitcoin cold wallets but if you are looking for a short term and easy to access place for your Bitcoin cryptocurrency then you should use a Bitcoin hot wallet while keeping in mind that this is not very secure and its nature.