One of the biggest problems of the cryptocurrency industry used to be that handling your Bitcoin or other currency was too complicated for casual users. Most wallets required technical knowledge that was far beyond the average even in developed countries.
The industry managed to solve that problem naturally and we have plenty of easy-to-use crypto wallets nowadays. In fact, there are so many of them that a lot of people are struggling to pick the one that suits their needs.
There are many factors to consider here and one of the most important ones is if you should use a hot or a cold wallet to store your cash. Let’s try to answer this question by determining your needs.
Are You Using Crypto Daily?
The first and probably most important question is if you are using your crypto on a daily basis for things like shopping, placing bets at an online sportsbook, or anything else that might require you to have access to your BTC or other currency at any given moment.
If that’s the case, there’s no doubt that you need a hot wallet. It will allow you to use your crypto quickly, while transferring your money out of the cold one takes more time and effort. It simply is not practical.
Do You Want to Invest in the Long Run?
Some people are not interested in using their cash and prefer to invest large amounts of money in the long-term future of certain currencies like Bitcoin, Ethereum, or one of the many other options in the crypto world.
If you are among them, you should probably consider using a cold wallet. It provides an extra layer of security and all experts in the field believe it’s the best way to store large amounts of crypto.
You have to invest some money and learn how to operate with it, but cold storages are the way to go for investing purposes.
If you can’t really decide what you want and you feel that you want the best of both worlds, you should probably consider some of the hybrid wallets that came out in the past several years. They usually allow you to keep a small chunk of your money in the hot wallet for daily transactions and still leave the lion’s share of your crypto in the cold wallet.
It must be mentioned that such solutions are usually harder to find and more expensive. If you can live with that, you should probably go with a hybrid wallet.