How many hot and cold wallets do you have?
Even though both hot and cold wallets provide private keys for you to keep your assets, there is a distinction in the way many people use them. Since hot wallets are connected to the Internet, they are more susceptible to hacks than cold wallets. So users keep an amount that is enough for them to fund their daily transactions. On the other hand, we use cold wallets to store large sums of money because we would be prompted to sign and approve any transactions before they are transmitted to the blockchain.
This means that if we practise due diligence, our funds are unlikely to be stolen.
Just wondering…beyond
this golden rule, do you customise it further for yourself? For instance, do you categorise the level of risk for the DeFi ventures you undertake and have different hot wallets that correspond to these risks? Less money in the hot wallet for the really high risk high rewards investments for instance? Another example would be people getting spooked by the Ledger saga in which enabling the Legder Recovery option allows the government to get access to your private keys should it issue a subpoena to all three companies holding on to the shards. You do have a Trezor but still hold on to a Ledger because the latter supports some coins that are not available in Trezor.
How many hot and cold wallets do you have for your varied purposes?
originally posted on r/cryptocurrency
