Why you should use hotwallets to store your crypto!

By Stan Peterson
Published December 31, 2021 Updated December 31, 2021

Why you should use hotwallets to store your crypto!

By Stan Peterson
Published December 31, 2021 Updated December 31, 2021

Security is a keyword once we have business with a blockchain. Although the word is sewn into the technology, we have to be especially attentive and careful as it concerns our holdings. What if you are just at the beginning of your crypto journey? What should you do first, and how to minimize risks?

The answer is a wallet. Yes, that’s definitely the step you need to take when dealing with crypto. You decide if you want a cold or a hot wallet, but we are here to show you the most popular and convenient hot wallet that stands for security. It’s the key to the cryptocurrency vault with your assets. A perfect wallet should meet your needs and demands, that’s why developers created it and gave it a name — a SimpleHold wallet.

What is a hot wallet?

The main difference between a hot and a cold wallet is that the first one is connected to the Internet, and the cold wallet is not. So, mobile, web-based, desktop wallets are called hot wallets due to their nature. It’s not a gadget, it’s completely digital.

How does a hot wallet work?

The essential elements of any cryptocurrency wallet are the cryptographic public keys and private keys. Public keys remind us of account usernames; they help to identify the wallet and prove that the user can receive tokens without revealing their identity. Private keys allow the user to access the wallet and check balances, make transactions, and a lot more. Without those keys, the wallet is 100% useless.

A hot wallet is connected to the Internet. It helps to make financial transactions digitally within a short period of time. The transactions are fast and straightforward. Your tokens and coins go directly to your wallet.

Such big and serious exchanges as Binance and Coinbase provide their own hot wallets, and that’s easier to make operations with your crypto having a wallet within the platform.

Some evident advantages of hot wallets

  1. They are easy to use. Why? They are always online (once you have the Internet connection, of course), and that’s extremely handy, as many people use mobile hot wallets to make transactions or buy with cryptocurrency. For such basic operations, there is no need for a cold wallet. It would be pretty challenging to do so with a cold one, as you need to plug it in and carry it around with you everywhere.
  2. Hot wallets give you an opportunity to be your own personal bank. No other people or parties manage your holdings. You’re the one person who is responsible for your private keys. With hot wallets, you better understand how the financial system works. You are not afraid of data breaches and a loss of your funds.
  3. They are free to use, while hardware (“cold”) wallets can cost from $50 to $200. So, if you’re, let’s say, a beginner and just explore the whole crypto world, maybe you are not ready to spend some extra money on a wallet.
  4. Only hot wallets give you a unique opportunity to have your NFTs gallery anyway you go. SimpleHold wallet supports viewing NFTs within a minute — it can be your very personal portable art gallery just in your pocket. Enjoy the variety of your private NFTs collection whenever you want.

Tips to protect your hot wallet

  • Make sure you download your hot wallet from the official website.
  • Avoid signing up over public Wi-Fi. If you have no choice, install a trustworthy VPN on your device.
  • A strong and difficult to guess password still isn’t that obvious, so prepare the one you won’t regret.
  • Update all your devices with the latest software, antivirus programs, and OS updates.
  • Backup your wallet – keep your seed phrase in a safe place, ideally written down.

Such wallets as a SimpleHold balances security and convenience; it’s a good compromise and a solution for those seeking a quick, smart, and simple way to manage their crypto funds. Once you treat your hot wallet the right way, you can use it to the fullest.

SimpleHold is a multi-cryptocurrency wallet that can be used on Chrome, Firefox, Opera, and Brave browsers. It’s also a browser extension and a mobile app that is convenient for immediate transactions and other online operations with your crypto. The wallet is a  promising and quite ambitious project by a SimpleSwap exchange that is growing, developing, and changing for you rapidly.

Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Stan Peterson
786 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.