Section Two: Benefits of Hot Storage
Benefits of Hot Storage
- Quick Access: Users can quickly access digital assets using mobile or desktop devices. You can trade digital assets 24/7 (ideally). So, if you want to invest or trade for the short-term, hot storage wallets are the best option. For example, when the exchange rate of Bitcoin goes down sharply, and you want to purchase Bitcoin, you can quickly add funds to your wallet and trade Bitcoin.
- Easy to Use: Download a spot exchange app and install it. Please create an account, and then you're done. Users can easily add funds and make transactions with a simple user interface. You can trade digital assets like you trade stocks with an online platform.
- Cost: Hot wallets are usually free, or users have to pay the bare minimum maintenance cost most of the time. So, if you need to pay heavy charges to purchase digital assets, that's not the case. You don't need to worry about wallet charges as these charges are affordable.
- Flexibility: You can store various digital assets using hot wallets. Also, software gets updated, and you can assess the platform with a better user experience. Furthermore, a spot exchange that you use gets updated, and you also get some assurance of security because the developers also have to work to improve the platform's security.
Paper wallets are also a type of cold storage wallet, and it is a piece of paper with the public and private keys of an individual. However, paper-based wallets are not popular these days due to their vulnerability. So in two forms, you can use cold storage wallets: physical paper-based and cryptography-compatible hardware with no need for an internet connection for proper high-level security to protect your digital assets.