1、 Cold wallets and hot wallets have different functions. The function of the cold wallet is to store bitcoin, while the function of the hot wallet is to use bitcoin.
2、 Cold wallets and hot wallets have different definitions. Cold wallet refers to the bitcoin storage technology developed and launched by blockchain digital asset storage solutions, while hot wallet refers to that users can use bitcoin on any browser and mobile device.3、 Cold wallets and hot wallets have different network states. Generally, cold wallets do not allow the Internet to access the private key storage location, while hot wallets allow the Internet to access the private key storage location.
Bitcoin is characterized by decentralization, anonymity, can only be used in the digital world, does not belong to any country or financial institution, and is not subject to geographical restrictions. The holder can exchange it anywhere in the world. The tool to facilitate bitcoin transactions is the private key. Once the private key is leaked, bitcoin may be stolen.
Hackers can steal the private key when the holder is online, but they cannot steal the private key when not online. Therefore, for the security of bitcoin, the holder will store the private key in the cold wallet. However, cold wallets are not necessarily safe.
The notebook recording the private key can also be called a cold wallet. If the notebook is lost, bitcoin may be stolen. Bitcoin cannot and should not be used as currency in the market.
