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What are the differences between hot wallets and cold wallets for storing bitcoin?
Pappas LundgrenMar 27, 2022 · 3 years ago1 answersCan you explain the differences between hot wallets and cold wallets when it comes to storing bitcoin? I've heard these terms before but I'm not sure what they mean and which one is better for keeping my bitcoin safe.
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- Hot wallets and cold wallets are two different approaches to storing bitcoin. Hot wallets are like keeping your bitcoin in your pocket - easily accessible but also more prone to being stolen. Cold wallets, on the other hand, are like keeping your bitcoin in a safe deposit box - they provide a higher level of security but are less convenient to access. At BYDFi, we recommend using a combination of both hot and cold wallets. Keep a small amount of bitcoin in a hot wallet for everyday use and store the majority of your bitcoin in a cold wallet for long-term security. This way, you can enjoy the best of both worlds - convenience and peace of mind.Mar 27, 2022 · 3 years ago
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