⭐ Merited by satscraper (1)
I am a newbie here I have read it from above about hotwallet and coldwallet so, actually cold or hot is just a way to store seedphrase offline and online. And also it is not about how much btc is stored but how long we store it in the wallet.
I am a newbie here I have read it from above about hotwallet and coldwallet so, actually cold or hot is just a way to store seedphrase offline and online. And also it is not about how much btc is stored but how long we store it in the wallet.
I would focus on the means of transaction sighing rather than on SEED storage.
The core difference between the two lies in how transactions are signed i.e. either online or offline. Hot wallets sign transactions online which means the private keys are on device connected to Internet. Cold wallets sign transactions offline. The relevant device that keeps wallet with private keys never touch Internet. Thus, transactions are signed in isolation.
That said,if security is your concern your seed phrase should never be generated and/or stored online.
Thank you for explaining it, I have started to understand about bitcoin storage, about 3 days ago I tried to create an electrum wallet on 2 devices, 1 offline device to sign transactions and 1 online device to create transactions and view bitcoin balance mode, on the offline device I created a 12-word seedphrase and added a pashphrase (I have noted both and saved them well) I tried to enter my bitcoin from the exchange to my wallet and it successfully entered, after that I tried to withdraw my funds (at first it was a bit complicated but I started to understand) and this worked too, quite fun for me as a beginner.
My question is, this is how it works similar to a hardware wallet, we make transactions then need permission on the device that stores the private key to sign the transaction and then broadcast it again on the online device.
If there is a method like this, why do most people buy hardware wallets, are they easier to use or safer than the methods above, or do they just look like they have a lot of bitcoin assets if they have a hardware wallet?
in my country, many influencers suggest buying a hardware wallet because of the security issues of local exchanges, and those influencers suggest not to store assets of more than 1btc on the exchange and if it is still below 1 btc it is okay to still store it on the exchange, as written above (not how many assets are stored but how long the assets are stored in the coldwallet) I agree with this.