How cryptocurrency hot wallets different from cold wallets?

In this article, we will share the information about what is cryptocurrency, how to mining cryptourrency, how to withdraw cryptocurrency and how are cryptocurrency hot wallets different from cold wallets.

What is Cryptocurrency?

Cryptocurrency is a decentralized digital currency that functions without the oversight of a central authority, such as a government or bank.

What is decentralized?

Those currencies which you are used for purchasing or selling rather than you’re living in any country, all those currencies are authorised and under the control of the Government and Central Bank.

What is cryptocurrency wallet?

Cryptocurrency wallet is a digital wallet just like your physical wallet, where you store your private keys, which are essentially the passwords that grant you access to your cryptocurrencies.

What is keys in Cryptocurrency?

When you buy cryptocurrency like bitcoin or Etherium, who recieve two keys;

1. Private Keys
2. Public Keys

Private Keys: Private key is just a mathematical code, randomly generated strings of letters and numbers, acts like a password. Private code is for protecting your cryptocurrency holder. 

Public Keys: Public keys are used to complete cryptocurrency transactions.

How are cryptocurrency hot wallets different from cold wallets?

A cryptocurrency wallet is a digital device or software program that securely stores your public and private keys, which are essential for buying, selling, and managing your cryptocurrencies. Let’s break down,

Wallets do not actually contain any physical coins. They store the keys to your digital currency. Transactions are conducted by validating your address with your private key.

• Hot Wallet: These wallets are running through online and they are less secure than cold wallets, making them convenient for daily transactions.
• Cold Wallet: These wallets are running offline and they are more secure than hot wallets, often used for long-term storage.