5 Comments

I have a cold wallet at home to store my Bitcoin. Storing it on Kraken would be too risky given the constant threat of hacker attacks.

Expand full comment

Hey Dennis, thanks for the comment! Cold and hot wallets are indeed key concepts for readers to understand. Here, we're discussing private key storage. With a hot wallet, your private key is kept online, which makes transactions more convenient but slightly less secure.

On the other hand, a cold wallet stores the key on a physical device, adding a layer of security since any transaction requires physical confirmation.

This makes cold wallets a safer choice for long-term storage, that is until you lose the physical device and you're locked out of your own account ;D

Expand full comment

You can still restore your crypto even if you lost your cold wallet. I keep my 12 secret words on a piece of paper :)

Expand full comment

Reminds me why I stick to analyzing companies with actual earnings and cash flows in the Nasdaq-100! While the tech behind blockchain is fascinating, I'd give most crypto investments a solid 🟥 rating until we see more regulatory clarity and proven business models. Keep these deep dives coming!

Expand full comment

I’d generally agree. This isn’t an endorsement of crypto. It is however a decent user manual for a very odd machine. It’s fascinating how quickly people dismiss assets and ideas without first understanding what they actually are. Here at The Hermit, we discard plenty of ideas too, but only after we’ve given them a proper interrogation 😉

Expand full comment