Hot wallet vs cold wallet - what's the difference?
In short
- A hot wallet stays connected to the internet for everyday use, which makes it fast and convenient but more exposed to online threats.
- A cold wallet stays offline, usually on a hardware device, which makes it the safest choice for storing larger amounts long term.
- Both can pay for a hotel on trip1. A hot wallet is quickest at checkout, while a cold wallet needs a few extra steps through its companion app.
What is a hot wallet?
A hot wallet is any wallet that stays connected to the internet, such as a mobile app, browser extension, or exchange account. Because it is always online, you can send a payment in seconds, which makes it the practical choice for spending and booking.
The trade-off is exposure. An internet connection means a hot wallet is more vulnerable to phishing and malware, so most people keep only smaller, spendable amounts in one.
What is a cold wallet?
A cold wallet keeps your keys offline, usually on a physical hardware device or a paper backup. Because it is not connected to the internet, it is far harder for an attacker to reach, which makes it ideal for long-term storage of larger holdings.
The trade-off is convenience. To spend from a cold wallet you connect the device to its companion app, approve the transaction on the device, and then send.
Which one should you use on trip1?
For booking a hotel, a hot wallet is usually easiest because it is ready to scan the checkout QR code and send straight away. trip1 accepts payment from either type, so a cold wallet works too if you prefer to pay from offline storage.
A common approach is to keep most funds in a cold wallet and move a small amount to a hot wallet when you are ready to book.
Related articles
Hot wallet vs cold wallet - FAQ
A hot wallet is connected to the internet for everyday use, while a cold wallet stays offline for long-term storage. Hot wallets are more convenient; cold wallets are more secure.
A hot wallet is usually easiest for paying on trip1 because it's ready to scan the checkout QR code and send quickly.
Yes, cold wallets are safer from online threats because they stay offline. They're best for storing larger amounts long term.
Yes. You can connect a hardware wallet to its companion app to send a payment, though it takes a few extra steps.
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