Crypto wallets are an essential part of any investor’s repertoire as they allow you to store your hard-earned cryptocurrencies. Without them, the entire crypto-economy would simply fall apart overnight as it has now become impossible to send/receive or store digital assets.
Still, did you know that crypto wallets can be divided into two different classes, which are types of crypto wallets.
Hot wallets. Online-only websites or apps that give you real-time access to your cryptocurrencies. They are usually free-to-use and available to anyone with an internet connection and an email address.
Cold wallets. These are hardware-based storage devices that store your cryptocurrencies offline, unlike hot wallets. Cold wallets do not need an internet connection to function but must be plugged into work. They can be physically secured, i.e., in a safe or safe deposit box if required.
Now that you can differentiate between the two wallet types let’s see why some say that hot wallets are better.
Note: to be totally clear, both types of wallets have their fair share of strengths and weaknesses. For this article, we’ll be highlighting why hot wallets are the better choice for more casual crypto investors.
1. Crypto wallet apps are portable
The most significant advantage a hot wallet has over its hardware-based counterpart is its portability. Because hot wallets are web-based, you can bring your cryptos on the road with you, or anywhere else you go.
All you’ll need is a personal computer or a smartphone and an internet connection, and you’re good to go. Better still, thanks to rising crypto adoption rates, chances are good that more merchants will start accepting crypto payments.
2. You can access your cryptos immediately
Another reason why hot wallets are so popular is that they give users real-time access to their cryptocurrencies. For example, if you’re looking to purchase something on the internet or make a payment, all you have to do is to log in to your hot wallet and process the transaction.
The same applies if you need to receive cryptocurrencies from somebody else. All you have to do is provide the third party with your wallet’s address, and you’re all set.
On the other hand, cold wallets require users to physically plug their devices into a computer and log in and transfer funds to their cold wallets – all of which is highly time-consuming.
3. Most crypto wallet sites offer sign-up bonuses
Given how competitive the crypto industry is, crypto wallet service providers are always on the lookout for new clients. Because of this, they often offer lucrative sign-up bonuses to attract customers and encourage them to create accounts with them.
So if you didn’t already need a reason to sign up for a crypto wallet, now is the perfect time to do so. Often, sign-up bonuses are paid out in the form of cryptocurrencies, giving you even more of a reason to use a hot wallet.
4. Hot wallets are free-to-use
Unlike cold wallets, which can be pretty pricey, hot wallets are free-to-use and also offer sign-up bonuses. All you have to do is just sign-up for an account with your email address, and you’re all set, all without having to spend a cent.
To top it off, hot wallets are easy-to-use and don’t require any complicated setup, better yet, some hot wallets can also interface directly with cold wallets if needed.
Closing Thoughts
So, there you have it, a list of the reasons why crypto wallet apps may be just that much better than their hard wallet counterparts. Click here to find a list of the best crypto wallet apps in 2021/2022.
Though, like with all things related to crypto, always remember to protect your privacy and never invest more than you’re willing to lose.
