Hot and Cold crypto wallets for gambling: point by point comparison

0
3513

Many gamblers are turning to cryptocurrencies in order to take advantage of their special features that make the entire experience of gambling unique. From providing the utmost safety and security in transactions to safeguarding anonymity and ensuring privacy, cryptocurrencies are offering unparalleled benefits to users and gamblers seem to have really gotten into the whole crypto ecosystem. 

Most of the existing gambling platforms, including online casinos or even the best slots apps in the market, have already included or are considering including crypto payments into their accepted methods of transactions. That’s only natural, considering that they want to be aligned with user trends and above all they want to be able to deliver their services according to their customers’ tastes. 

So, if you are a newbie in playing slots or other online casino games (for more info you can check on reviews here) or if you simply have no experience or prior knowledge regarding cryptos, you need some orientation on matters that are likely to confuse you. 

One such matter is the choice over hot or cold crypto wallets. If you decide to use cryptos for your transactions, then you will certainly need a “place” to store your cryptos everytime you make a withdrawal and of course everytime you want to make a payment. This ‘place’ is called a crypto-wallet. 

The tricky part, though, is that you need to decide what kind of crypto-wallet you are going to choose, because there are two predominant types: the hot wallets and the cold wallets. 

Their most apparent difference is that the hot wallets are online ‘places’ where the keys to your cryptos are stored, whereas the cold wallets are offline ‘places’ performing the same function. 

Let’s see a comparison of the two on basic things like access, security, cost and ease of use. 

Access and convenience

You can access your hot crypto wallet by any device that gives you access to the internet and so you can perform any transaction with cryptos as long as you have an internet connection. 

With cold crypto wallets, this is not possible. They are not online, so they use hardware to maintain your keys. Such hardware may be a drive, a usb or any other device which you can have access only through a computer. You don’t need the internet here. 

So, it depends on what kind of convenience suits you more. If you are a person that is always online, it’s most likely that you will find hot wallets’ features more appealing. On the other hand, if you are a person that likes to keep things more traditional, then cold wallet it is!

Security

Normally, one would expect that hot wallets are safer because you don’t get to carry them around. They exist online and so the security goes as much as you can to make sure that no one hacks or gets illegal access to them. But can you ever be certain of something like that? Probably not!

This brings us to the cold wallets and the fact that since they are physically kept by you, it is you that can optimize their safety and make sure that they are not stolen or accessed by others. So, in terms of security we have cold wallets being better than hot wallets. 

Cost

Now, let’s think of the cost. Hot wallets are generally free and this means that it doesn’t cost a thing to maintain such a wallet for storing cryptos. Often, hot wallets give you an interest for keeping cryptos – always depending on the amount of course.

On the other hand, cold wallets are hardware devices, which means that you need to purchase them. You can find cold wallets for a price of as low as $5 to as high as $250. 

So, the cost issue is a matter that bears a lot of thinking. In the first case it is totally free, while in the other case you need to pay something. 

Ease of use

Now, while this is a completely subjective thing, we can say just a few words on how easy it is to use each of them. Hot wallets are easy to use because you are only required to go online and make any transactions or trading you want.

Cold wallets are a bit harder to use frequently, because you are required to perform a whole process for the hardware device, but they are good for storing cryptos. 

So, hot wallets are easier to use when you are likely to make a lot of transactions, whereas cold wallets are easier to use for storing cryptocurrencies. It’s totally up to you to find which is the best crypto wallet for you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here