Can Your Crypto Wallet Be hacked?

TL;DR

  • There are different types of wallets available for holding cryptocurrencies
  • Depending on your preferred option, it is important that you keep your private keys safe and stored in a secured location
  • Crypto wallets can be hacked that is why it is sometimes recommended to store assets on a cold wallet

Types of Crypto Wallet

Crypto wallets are broadly categorized into hot, cold, and paper wallets. Although in recent times, paper wallets are no longer in vogue, therefore, we will concentrate our effort on explaining hot and cold wallets.

Private Keys are Private

Private keys play the role of locks and anyone who has access to them can easily get into a crypto wallet and access the funds held in them. For this reason, it is always advisable for crypto users to safely store their private keys in a place where no other individual can access them.

Which is Better?

There is no best option when it comes to crypto wallets, however, cold wallets tend to be safer and less prone to hacks than hot wallets. If you wish to invest in the long-term, you should definitely consider a hot wallet, but if you wish to constantly engage in asset flipping or trading, a hot wallet will be more convenient for you.

Conclusion

Crypto wallets are meant to be kept safe at all times and as a user, you are supposed to play your part by safeguarding your private keys. Hot wallet users, however, need to hope that their host does not get compromised. This is a reality they have to keep with at all times.

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