This article by Prachi Kothari provides a comprehensive guide on setting up a secure crypto hot wallet. Hot wallets, which require an internet connection, store keys to access the blockchain where cryptocurrencies are stored. They offer convenience and accessibility for financial transactions in the virtual currency market. However, they pose a higher risk of hacking due to online key storage.
Three types of hot wallets are discussed: desktop, mobile, and web. Desktop wallets run on computers and are only connected to the internet when necessary. Mobile wallets are portable and always with you if installed on your primary phone. Web wallets allow transactions through a web browser without any software download, but they are hosted by a third party, which can pose a security risk.
Setting up these wallets involves downloading and installing the wallet software, creating a profile, and setting a strong password. Two-factor authentication is recommended for added security.
The article also provides a step-by-step guide on installing a hot wallet using MetaMask as an example, emphasizing the importance of securely storing the seed phrase.
Despite their convenience, hot wallets are prone to security breaches, and users are advised to store only necessary funds in them, keeping most digital assets offline or in a cold wallet. The security of a wallet is determined by the security of the cloud or infrastructure it is built on. 💻🔐💰📲🌐
To dive deeper, check out the complete article: https://droomdroom.com/how-to-set-up-a-hot-wallet/
