What is the difference between a Hot Wallet & a Cold Wallet Storage?
Hot Wallets are the ones that reside online connected to the other blockchains or is under an exchange. Unprotected Hot wallets are prone to attack and the exchange owner may lose access to the wallet or might lose the cryptocurrencies belonging to their users. In the recent times, even popular cryptocurrency wallets like Coinbase have been hacked.
Cold Wallets are physical hardware wallets that are are password protected, air gapped from the internet and the data is encrypted.All you have to do is transfer the cryptocurrencies to the cold wallet and they are safely stored and with you all the time. Cold wallets are safe and cannot be attacked since it is not connected to the internet.
What Cold Wallets are supported?
Trezor is supported out of the box, but we are working to bring in connectivity to other Cold Wallets as well.
Top 3 reasons to own this Cold Wallet Integration Module:
Cold wallets are an important module for any Cryptocurrency Exchange, as uncertainty looms over every cryptocurrency exchange on the planet, due to security or an employee going rogue.
Peace of Mind:
Knowing that all the cryptocurrencies are with you all the time, you can focus on improving the cryptocurrency business rathering than fearing about the security of the cryptocurrencies.
Users love it:
A good backup strategy for any exchange is to store funds in their cold wallets that can later released to them later.