Why is the wallet on the platform called Cold Wallet (which platform charges cheaper for Cold Wallet)

08/06/2023 10:28 • AI & Tech Insights • 79 views

Why are wallets on platforms called cold wallets? Why are wallets on platforms called cold wallets?

With the rise of Bitcoin prices and the rise of decentralized financial (DeFi) ecosystems, many investors have become interested in decentralized digital currencies. But in traditional finance, we need to use a safe method to ensure the safety of our assets. And this method is mainly used in some high-risk investment projects, such as short selling, investment funds, private equity funds, and exchanges; In addition, some people may use such tools for illegal fundraising and fraud Due to the characteristics of blockchain technology, users must undergo strict screening to obtain the corresponding funds or information flow when participating in any project or service, in order to avoid hacker attacks and fraudulent behavior. Therefore, why are wallets on the platform called cold wallets? According to the 2018 Global Crypto Asset Report released by the international third-party Big data rating agency RatingToken, the global market value of Cryptocurrency is 2.77 trillion dollars, of which less than 2% is realized through Cryptocurrency transactions According to the Ratingtoken research team, the total value of global crypto assets in 2019 was $4.68 trillion, and the total amount in 2017 reached $5.37 trillion. In the first half of 2019, a total of 160000 BTC addresses exceeded $1 billion. In June 2020, nearly 200000 new addresses were added, an increase of 800% year-on-year, and the growth rate far exceeded expectations. At the beginning of 2018, approximately 100 new addresses were added, a threefold increase compared to the same period last year, but a significant decrease compared to the first quarter of 2019. On February 19th, the number of new entrants in the encryption field continued to increase, with a growth rate of 50% as of the time of publication Although many people refer to this word as “hot money in the coin circle,” in practice, not all wallets are the same. The reason why wallets on the platform are called cold wallets is because they do not store their assets in cold storage, but directly store them in hot storage devices. That is to say, if you want to become a long-term Bitcoin user, all you have is the balance in a Bitcoin wallet account, so your digital assets cannot be transferred to the hard drives stored in these freezers – that is, they do not belong to your account. If someone thinks this is a hypothesis, it means that the platform’s funds have been fully invested and there is still a portion of assets that can be used to pay for related operating expenses, which is called a refrigerated hardware wallet For most users, a hot wallet is usually understood as a digital wallet stored on a personal computer, as it is not a specific file generated online, nor is it a single software manager, and cold wallets do not support other types of applications. On the contrary, Cold Wallet is more suitable for ordinary mobile phone users.

Which platform is cheaper for Cold Wallet?

According to the official website of Cold Wallet, when choosing a platform to purchase Cold Wallet, the following points should be considered: first, use a managed wallet type; The second is to pay storage fees. Cold wallets generally provide users with storage services for one account or multiple digital currencies, storage space requirements, and hardware devices. If users want to keep their personal assets in their private key without having to go through a bank account, they can request them or use their smartphone to scan the QR code to access their balance, which can then be kept by a third-party company without worrying about security issues or other unexpected situations. In addition, according to the needs of users, there are two things to pay attention to when using a hot wallet: the first is that the storage amount must be greater than $10 (excluding transactions). The second requirement is to have a password to enter the fund pool, as only having a sufficient amount of data can one deal with it. (Note: Cold wallet refers to a device used to store encrypted information and files)

This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/ai/22391.html

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

Why is the wallet on the platform called Cold Wallet (which platform charges cheaper for Cold Wallet)

Which platform is cheaper for Cold Wallet?

Related recommendations

The tot…