What is Hot Storage in Forex Trading?

Table of Contents

Hot storage is term related to cryptocurrency wallets. People of cryptocurrency community often say that, “not your keys, not your bitcoin”. The idea behind this phrase is if you can’t control your keys, you can’t control your bitcoin. When it comes to storing private and personal keys, online wallet is usually a personal choice.

There is different varieties and forms of hot storage such as hot wallet, software wallet, online wallet etc.

It is an online tools that allows the cryptocurrency user to send receive and store transactions. Hot wallet is linked with public and private keys and act as security measures. The main advantage of hot wallet is it facilitate basic transactions. The main disadvantage of hot wallet is that, as we know it is linked to internet, that’s why, it is somewhat more vulnerable to hacks and theft as compare to other forms of wallets.

 

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