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However, hot wallets have vulnerabilities due to their internet connection, making them susceptible to hacking and malware. A cautionary tale shared by a subscriber highlights that his $3,500 worth of Bitcoin was stolen after malware compromised his hot wallet. Therefore, for long-term storage, cold wallets—physical devices that store keys offline—offer superior security.
Purchasing the Wrong Cold Wallet
The second mistake relates to the purchase of cold wallets. Choosing the wrong cold wallet can lead to a negative experience, causing frustration and discouragement for new users. To select the best cold wallet for your needs, consider the following questions:
Does it support the cryptocurrency you wish to hold?
Is it compatible with your device?