March 1, 2022

What is a Bitcoin Wallet?

What is a Bitcoin Wallet?

The difference between a hot (online) or cold (offline) wallet is simply whether your seed passphrases were created in an offline device that is not connected to the internet or online through applications such as mobile wallets or desktop wallets.

With an Online Hot wallet, there is always a possibility of malicious software spying on your devices such as laptop or mobile, or even a hot wallet provider being compromised by a malicious attacker, therefore, being able to steal your seed passphrases or even replace BTC address aka injecting new bitcoin address when you are sending coins to another wallet or user.

Therefore it is highly recommended that the majority of your BTC held as a store of value or, if there is no immediate need and use of them, be stored on a dedicated cold wallet.

The best types of wallets are open-source wallets, which means we know how they work on the inside.