Explain the Difference between 'Hot Wallet' and 'Cold Wallet' Custody ▴ Learn

Explain the Difference between ‘Hot Wallet’ and ‘Cold Wallet’ Custody.

Hot wallet custody involves storing private keys on a device connected to the internet, allowing for quick access and transaction execution. It is highly convenient but carries a higher risk of online hacking.

Cold wallet custody stores private keys on an air-gapped, offline device. It is much more secure against cyber-theft but requires a more complex, multi-step process for transactions, making it suitable for large, long-term holdings.

How Does ‘Cold Storage’ Custody Differ from ‘Hot Wallet’ Custody for Institutional Crypto Assets?

Differentiate between “Hot Wallet” and “Cold Wallet” Storage Methods

Explain the Difference between a ‘Hot Wallet’ and a ‘Cold Wallet’

Differentiate between a Hot Wallet and a Cold Wallet