WHAT IS A COLD — HOT WALLET?
There are two ways to store data in digital media: Cold and hot storage.
Hot wallet is used for easily accessible data; It is a fast and expensive type of storage. Cold wallet, on the other hand, is more economical and is a type of offline storage used for data that does not need continuous use.
E.g; Storing files and data through various cloud applications is a storage method. Cloud systems can offer hot or cold services as needed. In which cases cold storage and in which cases hot storage will be preferred actually determines the data itself. All data that needs to be accessed continuously and that can be shared when necessary should be stored with hot storage method.
By storing visual or written files in Google-based storage systems; The best example of this is to be able to download it quickly when necessary, to make various additions or changes on it, and even to share it. It may take minutes or even hours to access data or files stored with the cold storage method. Sometimes the data can be made independent from the internet by storing it in the disk. With this method; “Still data” that does not need to be used actively, whose need is questioned, or which does not have time to be used even if it is important can be stored. In the blockchain ecosystem, wallets store crypto assets.
There are two types of wallets, hot and cold. Crypto assets with constant investment movement can be kept safe with the hot storage method. In this way, the person can transact with his assets whenever he wishes. In addition to using hot wallets, holding assets on cryptocurrency exchanges is also a method.
Assets that are not planned to have an investment circulation can be safely kept in a cold wallet. Since there is no need for internet access in this method, the possibility of being affected by cyber attacks is also minimized. Access can only be achieved by logging in with the specified password and that password should not be shared with third parties.