What Are Hot and Cold Crypto Wallets?

A crypto wallet is a tool that allows you to store and manage your cryptocurrency. Wallets come in two main types: hot wallets and cold wallets.

• Hot wallets are connected to the internet. They’re typically apps, browser extensions, or platforms that allow quick access to your crypto.

• Cold wallets are offline storage solutions like hardware devices%- or paper wallets, offering extra protection against online threats.

Why Would You Need a Hot Wallet?

Hot wallets are ideal for people who need quick and frequent access to their crypto for trading, payments, or transfers. They’re user-friendly, fast, typically free to use and convenient for daily transactions and storage.

Benefits of Hot Wallets:

• Easy to set up and use

• Instant access to funds

• Perfect for active traders

If you use Binance, Luno, Valr, MetaMask or even FiveWest then you are already using a hot wallet. Certain hot wallets offer yield accounts, allowing you to grow your digital assets. Learn more about FiveWest’s Earn account.

Why Would You Use a Cold Wallet?

Cold wallets are designed for long-term independent storage that keep your digital assets safer from hacks or phishing attempts as these portable devices are accessed with a unique password. Since the cold wallet exists off-chain, your digital assets need to be sent to an exchange (such as Binance or FiveWest) in order to be exchanged into another cryptocurrency or fiat.

Benefits of Cold Wallets:

• Increased security

• Protection from malware and online attacks

• Best for long-term holders

If you're considering investing in a cold wallet, both Ledger and Trezor offer a range of trusted, secure options to suit your needs.

FiveWest: Your Secure Hot Wallet for Crypto Payments

At FiveWest, we offer a secure and reliable hot wallet solution designed for fast, safe crypto transactions. Whether you're sending, receiving, or managing digital assets, our platform gives you the flexibility and speed you need.

If you have a cold wallet, FiveWest are able to assist you offramp your digital assets and convert them into other cryptocurrencies or ZAR. FiveWest are also able to transfer funds to a cold wallet.

Ready to simplify your crypto payments?

Sign up with FiveWest today and experience secure, user-friendly crypto wallet services.