A hot wallet crypto storage, unlike a cold one, is connected to the internet. While hot wallets are less secure due to privacy and security risks, they are much easier to use and act as online BTC wallets. Hot wallets are best used for daily small purchases and transfers, while cold wallets are best used for storing large amounts.
Meanwhile, cold wallets are used to store crypto assets offline and can be loosely compared to physical wallets or safety deposit boxes.
Main Types of Hot Wallets / Online Crypto Wallets
Online wallets are accessed through a web browser and are hot, meaning they are always connected to the internet and are extremely attractive to hackers of all types.
Advantages:
● High speed of transactions.
● Ideal for storing small amounts.
● Easy exchange integration.
Disadvantages:
● Susceptible to malware and hacking attacks.
● Assets are stored on a third-party server.
Mobile crypto wallets provide access to crypto assets via mobile devices. These are fully online wallets that often come with additional services.
Advantages:
● More practical and convenient.
● Ideal for daily transactions.
● Multiple additional options included.
Disadvantages:
● Vulnerable if mobile devices are lost.
● Susceptible to malware and hacking.
Main Types of Cold Wallets
Desktop wallets are considered secure, but a lot depends on using additional digital security measures like firewalls and antivirus software.
Advantages:
● Ease of use.
● Private keys not stored by a third party.
● Higher privacy.
Disadvantages:
● Susceptible to malware if the desktop computer is infected or connected to the internet.
● All data can be lost if the computer is damaged, and no backups are made.
● Some wallets require extensive permissions like security certificates to be installed.
Examples: Exodus, Multibit, Armory, Bitcoin Core.
Hardware wallets are the ultimate in cold storage as some models come with LCDs, fingerprint readers, and other security measures. They act much like USB flash drives storing information about digital assets and become hot only upon access with a device connected to the internet.
Advantages:
● Highest level of security.
Disadvantages:
● Bulkiness.
● Some models are hard to find.
● Inconvenient in terms of speed of accessibility.
Multi Crypto Wallets
These types of wallets are a hybrid of cold and hot wallets and require confirmation from more than one user to complete a transaction. They are somewhat similar to a joint bank account, where in order to perform any action, several people must enter a PIN code. Such wallets are suitable for use by both private individuals and companies. Multi crypto wallets are considered to be some of the safest crypto wallets that allow users to transfer money to bitcoin wallets.
The TRASTRA Wallet
Apart from offering crypto Visa debit cards, TRASTRA also offers users an all-in-one crypto wallet – the TRASTRA Wallet for secure and convenient cryptocurrency operations.
The TRASTRA Wallet is a white label cryptocurrency wallet that allows users to store the most popular cryptocurrencies, namely Bitcoin, Ethereum, Litecoin, Ripple BitcoinCash, and USDC, and exchange them for traditional currencies through a single, convenient interface.
The all-in-one TRASTRA Wallet is a secure crypto wallet that combines the best features of both the traditional fiat and cryptocurrency worlds, making it ideal for both individuals and businesses.
All TRASTRA wallets come with a free personal IBAN account for Euros and with the ability to store, buy, and sell cryptocurrencies. The wallet linked to the TRASTRA Payment card uses the wallet conveniently in everyday life and facilitates acceptance and transfers of cryptocurrencies at minimal fees.
The wallet acts as a crypto exchange wallet and allows users to turn their Bitcoins and Altcoins into Euros through instant exchanges and use them via debit card. The wallet also gives users the choice to determine the mining fees. Transaction at minimal mining fees and no commissions at slow speeds means transaction fees go at medium speeds or high transaction speeds at high mining fees and commissions.
All TRASTRA multisig wallets are issued by industry leader BitGo and feature advanced security features like 2-Factor Authentication(2FA), SSL encryption, device authorization, and much more.
Conclusion
The choice of wallet for cryptocurrencies is largely based on the needs of the user. Hot or cold – the convenience of use and security is what counts in the end. That is why TRASTRA offers the TRASTRA Wallet as a perfect merger of the best features of both hot and cold wallets for crypto operations surpassing user expectations.
