Differences between a Cold & Hot Wallet

There are about 1.6k types of cryptocurrencies available.

Just like fiat currencies need bank accounts and wallets, we need wallets to keep our currencies safe and readily available for usage. However, because cryptocurrencies are virtual currencies, wallets must be an avenue of safe and secured storage.

Essentially, there are 2 different types of wallets — just like all relationships, they are hot and cold. 😄

What are hot wallets?

Hot wallets are digital storage systems that are directly connected to the internet.

This would mean that transactions will be done quickly and readily. Simply put, it is just like having cash on hand, where it is extremely liquid and can be used whenever preferred. Now that everyone is jumping on the crypto-bandwagon, hot wallets have also gained attention of hackers. Thus, hot wallets that are intended to keep low volume of coins are extremely susceptible to hacking since it is accessible via the Internet.

Then, what are cold wallets?

This is where cold wallets enter — where you can keep your coins offline. This is a much safer way for storing your cryptocurrency.

Cold wallets are often in the form of an offline storage, such as hardware wallets in USB form, paper wallets, or on hardwares that are not connected to the internet.

By being on an offline channel, it will not be as susceptible to hacking and hence is a much safer storage system. So what other functions can a wallet do?

Introducing SPIKE Wallet, where you can get the power of 1000 whales in your wallet. This wallet allows you to store SPIKE tokens, where these tokens can then be used for investment purposes. After choosing big investors (referred to as whales) to follow, these SPIKE tokens will be used to mirror their investment transactions, thus automating your entire investments for you, tagged to the whale you follow!

SPIKE wallet is an example of a hot wallet, due to its liquidity when transactions mirror. Despite the concerns over hacks, there is no need to worry about security as SPIKE is a highly reliable technology, constantly updated with modern technology stacks and also has fully audited security standards. Start SPIKING now, a safe and secure way to use your wallets and multiply your investments!

by Morgan Kek, Chief Financial & Operations Officer

Drawing from its successful and rich experience in the stock market since 2016, Spiking is expanding to cryptocurrency trading! With its unique and powerful trading tool and its AI robot Robobull, Spiking enables traders to easily find whales and mirror the trades automatically. At Spiking, we strive to help traders make better decisions and take the steps toward fulfilling their dreams of achieving financial freedom. Check out Spiking App, Top Grossing Finance App at App Store & Google Play.

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