Read time 4 minutes

Are hot wallets safe?

Cryptocurrencies

Hot wallets are connected to the Internet and allow you to access your funds in real time. This is a great advantage for users who want to check their balance quickly or make payments from a remote computer. However, this also makes hot wallets much more vulnerable than cold ones. Hot wallets can be hacked and drained of all your funds. Hot wallets are not secure Hot wallets are less secure than many users expect them to be. Research has shown that up to 40% of all digital currency transactions carry some degree of risk from being exposed to hacker attacks. If you keep your cryptocurrency in a hot wallet, moving some or all of it to cold storage may be prudent.

What is a hot wallet?

A hot wallet is a digital wallet that is connected to the Internet. It is connected to the Inter Blockchain Network (IBLT). Therefore, they have a certain level of risk in terms of security. Hot wallets are also called online wallets or online cryptocurrency wallets. You can think of them as your computer that is always connected to the Internet. These wallets are very convenient when you need to move money around daily, or you need to have your life savings in there. 

Is a hot wallet safe?

The answer is tailored to your needs. If you want to save significant money, there may be better options. Of course, here we are overlooking that there are projects that care about the security of users. Still, being connected to the internet leaves room for the possibility of something going wrong. When it comes to money, the best is to eliminate that possibility. 

On the other hand, if you are a user who only wants to keep a small amount of cryptocurrency and own private keys, go ahead; hot wallets are a good idea. 

How to choose a hot wallet?

  1. The first step to finding a reliable and secure hot wallet is to research several criteria before making a choice. That is why we will give you those aspects to consider when choosing a hot wallet. 
  2. Security: You need to ensure that the wallet provider has a good reputation and is reliable and trustworthy. It is also advisable to seek partial opinions from previous customers. 
  3. Reliability: You need to make sure that the hot wallet is reliable. This means that the software is robust, and the team that develops it offers a good service. You must choose a hot wallet with a positive track record in terms of its services.
  4. Comfort: You should also ensure that the wallet is comfortable to wear. This means that the account is easy to set up and use and has a good user interface. This will help you access your funds in an easy and fast way. 

Security tips for storing cryptocurrencies in a hot wallet

  1. Always use a strong and secure password. 
  2. Avoid reusing the same password across different services.
  3. Whenever you use a public computer, try to activate a VPN connection.
  4. Be careful when transferring funds to other wallets.
  5. Remember that no hot wallet is immune to hacking. 

3 Hot Wallets We Recommend Using

Now that you know what a hot wallet is and its associated risks, it's time to find the best one for your needs. We considered the abovementioned factors and selected three wallets that comply with those golden rules. We recommend you do your research anyway before depositing funds into these wallets.  

  1. El Dorado: Our app is a good option if you want to keep your cryptocurrencies safe. Our app has state-of-the-art licenses and protocols, which help us keep your savings safe. In addition, saving cryptocurrencies is one of the many functions you can do in El Dorado. Download our app, which is available for iOS / Android / Web.
  2. MetaMask: This wallet is one of the most used by the crypto community for its security and simplicity. +30 million users use it, and one of its features is that you can explore thousands of DApps within its app.
  3. Trust Wallet: This wallet is one of the safest in the ecosystem since not only do you have complete control over your cryptos, but also, Trust does not collect personal information from users, which makes it much more private. 

Thanks for reading our article. Remember that the best way to keep your cryptocurrencies safe is to use a cold wallet and only use these hot wallets for day-to-day movements. El Dorado is your best option to save and, at the same time, make daily payments; with our P2P, you can exchange cryptocurrencies for your local currency in just minutes. Take your time, and start saving with El Dorado.

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