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Difference between software and hardware portfolios

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Hot Wallet(Software wallet)

A hot wallet is a software wallet that is always connected to the Internet, used to store cryptocurrencies conveniently, enabling fast transactions and easy access to funds.

However, hot wallets are more vulnerable to cyber-attacks because they are constantly connected to the Internet. Although they offer fast accessibility, their security depends on the security of the device on which they are installed.

Cold Wallet

A cold wallet is a hardware wallet designed to store cryptocurrencies securely, as it is not always connected to the Internet.

Cold wallets are generally hardware devices, such as physical wallets or USB sticks.

Thanks to their lack of Internet connection, cold wallets offer enhanced security against cyber threats. Private keys are stored offline, considerably reducing the risk of unauthorized access by hackers.

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