It’s a fact that people, after buying crypto, then will need a digital wallet so that they can store their cryptocurrencies. There are many options available, like cold wallet, hot wallet, warm wallet, and others. But, in my opinion, a hot wallet is the last thing that you can choose, and I will recommend you avoid hot storage; know why I recommend that:
Connected to Internet
One of the most dangerous risks that hot wallets possess is that they are connected to the internet. Now, they can sure beneficial for digital fund transfer, but they are risky. That is because they can be hacked easily. No matter how strong a password you have created, it’s possible for the best hackers to hack your hot wallet and steal all your cryptocurrencies. However, you won’t be able to be safe from the other threats on the internet. Now, the internet is a place where many scams and hackers are waiting for people to make mistakes so that they can steal their data and everything that people have. So, hot wallets are not a good option for you at all.
Virus
Since the hot wallet is connected to the computer and the internet, there is a great chance that any virus can attack the system, and your cryptocurrency will be hacked or lost. The Internet is filled with viruses, scams, malware, and other harmful things. At the same time, viruses are designed for the purpose of attacking and harming your system. So, if you are keeping your valuable assets with the touch of a computer or with the internet, then the chances are high that you can encounter a dangerous virus that could wipe your cryptocurrencies easily.
Online attacks
Since hot wallet will store all your cryptocurrencies on the internet, so there is a great chance you will lose them if any online attacks happen. Now, online attacks are common. Especially if you are a well-known investor and have a good reputation in people, that means people know that you possess a lot of assets on your account. So, hackers will try to infiltrate your system with online attacks. That’s why keeping your valuable cryptocurrencies, and other digital assets in the hot wallet and, more specifically, online would make your belongings vulnerable to hackers.
Bad History
Hot wallets have a very bad history of keeping all digital assets safe. Now, if you don’t believe me, then search for yourself on the internet. You will find tons of articles about why hot wallets aren’t safe and how many people have been hacked. I already mentioned a hundred times that hot wallets wouldn’t provide you with good security since they will be connected to the internet. So, anyone with good skills will be able to hack your account and steal all your cryptocurrencies.
Too Much Crypto Storing
It’s fine if you store some of your cryptocurrency on the hot wallet. That is because a hot wallet is best for faster transactions. So, that tiny amount won’t affect you if that gets hacked. But, if you are thinking about storing a large amount of crypto on the hot wallet, then think again, and store them on safer wallets like cold wallets.