Online wallet
There are online wallets; on the blockchain; (on-chain) and off-chain; the difference between (off-chain): on-chain wallet service providers help users keep encrypted private keys, and users’ bitcoin balances can be It is found on the blockchain that it is similar to preparing an independent safe for each user; an off-chain wallet service provider helps users keep the bitcoin itself, which is equivalent to putting user funds in their own vaults and providing users with a certificate of deposit. We generally call this type of wallet a hot wallet.
In the process of using the hot wallet, it must be connected to the Internet and can directly perform transaction operations. It is very convenient and quick for novice transactions. However, because of the need to connect to the Internet, when you use the hot wallet to store and trade digital coins, the outside world can Access the location where you store the private key via the Internet. Therefore, you may be attacked by hackers in the process of use, resulting in the loss of your assets.
Offline wallet
Compared to online wallets, offline wallets are offline wallets that are wallets that are not connected to the Internet. We generally call this type of wallet a cold wallet.
Cold wallet refers to the bitcoin storage technology developed by an information technology company that provides secure storage solutions for blockchain digital assets. Kushenlen Wallet integrates functions such as digital currency storage, multiple transaction password settings, release of the latest market and information, and hard fork solutions. It also uses QR code communication to keep private keys from touching the Internet, which can effectively prevent hackers from stealing .
But because it does not need to be connected to the Internet, when we need to trade, we can only trade by transferring assets to a hot wallet or trading platform. And it is not convenient to create a wallet.
Advantages and disadvantages of hot and cold wallets
Through the above introduction, everyone should understand the advantages and disadvantages of these two wallets. Here is a summary for everyone!
1. Hot wallet
Advantages: easy to use, transactions can be done directly in the wallet, and the transaction operation is simple, easy for novices to get started.
Disadvantages: Because it is connected to the Internet, it will cause hackers to invade and lose assets.
2. Cold wallet
Advantages: Since there is no need to connect to the Internet, there will be no hacking incidents, thereby ensuring asset security.
Disadvantages: You can't directly trade in the wallet, you need to make a transfer transaction, and it is complicated to create an account, which is troublesome for novices.