Crypto Wallet Security: Hot vs Cold Storage
Excerpt: Hot and cold wallets balance convenience and security. Learn their differences and recovery implications.
Post: Wallets store crypto keys, with hot (online) and cold (offline) options. Hot wallets (e.g., MetaMask) suit DeFi, while cold wallets (e.g., Ledger) prioritize security. A 2023 CoinTelegraph report notes 60% of hacks target hot wallets.
Hot vs. Cold Basics:
- Hot Wallets: Connected to the internet, vulnerable to phishing (Etherscan).
- Cold Wallets: Offline, immune to online hacks but risk physical loss (Ledger blog).
Recovery Implications: Hot wallets rely on seed phrases; cold wallets add PINs. Recovery is easier with seeds but harder for lost devices, per Reddit r/ledgerwallet.
Prevention Tips:
- Use cold storage for large holdings.
- Backup seeds offline.
- Check r/cryptocurrency for wallet reviews.
Sources:
- CoinTelegraph, “Wallet Hacks 2023,” 2023.
- Etherscan, “Hot Wallet Risks,” 2023.
- Ledger, “Cold Storage Guide,” 2023.