Bitget’s specific introduction to [Bitget Hot and Cold Wallet] is as follows.
Bitget cold wallet
Bitget cold wallet does not touch the Internet to reduce the risk of attack.
Bitget cold wallet has Multiple signatures, multiple authorizations.
Bitget cold wallet’s merit is the off-site backup to reduce accidental risks.
Important data segments are stored in the bank safe of Bitget cold wallet.
Bitget Hot Wallet
Bitget Hot Wallet acts as Security of private key storage.
Digital signature operations are performed using asymmetric key pairs to ensure data integrity. Use a FIPS 140-2 validated or validating hardware security module (HSM) to generate and secure keys.
The wallet service is physically isolated from the outside, and multiple networks are isolated.
Bitget Hot Wallet utilizes Multiple verifications. Each withdrawal is subject to multiple risk control audits by the business system before the wallet is signed.
Bitget Hot Wallet has a big data risk control system to prevent abnormal recharge and withdrawal behaviors, such as abnormal IP addresses, abnormal device IDs, abnormal deposit and withdrawal addresses, abnormal user behaviors, etc.
The system performs global reconciliation and real-time monitoring of asset changes.
Cold Wallet vs Hot Wallet: The Importance of Cold Wallet
The recent Kucoin hack, in which $275 million worth of cryptocurrency was stolen from Hot Wallet, was a reminder of the importance of wallets in cryptocurrencies. Today, we will take a general look at Kucoin’s wallet system, which was vulnerable to attacks, and some steps you can take to protect yourself and your assets as much as possible in the event of a similar attack in the future.
What is a cryptocurrency wallet?
A wallet (wallet) is a place to store cryptocurrency. Each wallet has several important unique elements, which also act as security measures to control who has access. The first component is your private key, a mathematically generated number and string tied to your wallet address. Controlling this key allows you to spend cryptocurrencies in that wallet. If you lose or forget this key, you will not be able to retrieve the funds in your wallet and therefore will lose access. Next is the public key. This is also mathematically related to the wallet address. The public key confirms that the wallet address belongs to you. As the name suggests, it’s important to keep your private key safe and only known to you. The public key can be seen by anyone. Your wallet will also contain a log of all deposits and withdrawals you can check against the blockchain.
Cold Wallet vs Hot Wallet
The most basic wallets used in cryptocurrency are hot wallets and cold wallets. There are several versions of these. If you want to know more about the different types of wallets, read What is a Cryptocurrency Wallet? A hot wallet is a wallet connected to the Internet, and a cold wallet is an offline wallet. The KuCoin hacking incident was aimed at the hot wallet system that stored the cryptocurrencies of KuCoin customers. Hot wallets are more risky and vulnerable to attacks, as an internet connection allows for faster online transactions, but at the same time makes it easier to open the door to hackers. Conversely, cold wallets are more secure because they are kept offline on separate hardware such as USB. Because access is only possible with the device, it takes more time to conduct cryptocurrency transactions based on blockchain technology, an online system. In order to make a transaction, you need to transfer funds to a hot wallet or temporarily connect a cold wallet to the Internet to send offline transaction details.
How is Bitget different?
Cryptocurrency exchanges that mainly use cold wallets, such as Bitget, are theoretically safer because access to funds or keys is not possible through the Internet. Bitget assigns each user a unique cold wallet deposit address, collects them periodically, and stores them in the company’s multi-signature cold wallet through offline signatures. In this way, the funds used and stored on the Bitget platform are safely protected from external attacks. One downside is that it takes a little longer to access your funds compared to platforms using hot wallets. However, if we can provide you with assurance and security that your funds are safe, we think it’s worth the wait a bit.
Wallet Security Best Practices
For this reason, we suggest holding both a hot wallet and a cold wallet. Cold wallets are good for a long-term investments that you will have for a long time rather than spending a large amount of cryptocurrency for storage. Hot wallets are useful for storing limited amounts of money you plan to use for online transactions in the near future. Take a good look at which wallet is best for you and use it. It is best to protect yourself from malicious loss by moving safely with the key. Just as only you know your PIN and password, so are your wallet keys. Cryptocurrencies are not as regulated or controlled as fiat currencies, so you need to protect yourself more.
Please check Bitget official website or contact the customer support with regard to the latest information and more accurate details.
Please click "Introduction of Bitget", if you want to know the details and the company information of Bitget.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...