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“Hot” crypto wallets: advantages and disadvantages

A crypto wallet is a special high-tech program that makes it possible to receive, send and store cryptocurrency. There are crypto wallets that work with only one cryptocurrency. There are also multi-currency crypto wallets. Let’s take a closer look.

“Hot” crypto wallets are extremely popular among users of the cryptosphere. However, they have many advantages and disadvantages that you should definitely be aware of. One example of a high-quality product is the vexel platform, it has a withdrawal to bank cards (Visa, MasterCard, Mir, Maestro, UnionPay) transfers to other third-party wallets as well as SEPA / SWIFT transfers.

Crypto

Also, an interesting addition is the Vexel crypto card, which is a convenient and instant payment method. Automatic conversion to the required currency when paying. Replenishment from any account of the Vexel personal account without commission. With a Vexel crypto card, you can withdraw funds from ATMs, make purchases on the Internet and pay for purchases at payment terminals. Also in this Vexel system, numerous problems related to product security are solved, which are still relevant in other free services.

“Hot” crypto wallets: undeniable advantages 

The obvious and most important advantage of any “hot” wallet is its convenience and accessibility. You just need to download it, and remember the password and the seed phrase. And you can already start using it. Whether it’s an app on your phone or an extension on your browser, it’s always at hand. If you need to instantly buy or sell cryptocurrency, then with the help of a “hot” wallet, this can be done in a matter of minutes, since transactions in it are fast. Ease of use and accessibility are the main advantages of hot wallets. The second important advantage is that such wallets support a very large number of tokens. This means that you can always interact with almost any asset. And at the same time very quickly. And the third important advantage is that “hot” wallets are free. What can not be said, for example, about “cold” or hardware wallets.

What is the main problem with hot wallets? 

The most important and main disadvantage of all “hot” wallets is their security. Such wallets are always connected to the network when used, which means that they are vulnerable to hacker attacks. If your computer is hacked, there is a risk that scammers will get to your hot wallet funds. Also, if a fraudster somehow finds out the password from the wallet, it will not be difficult for him to enter it and take all your funds.

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