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by sosodev 1263 days ago
Storing most of his bitcoin in a single hot wallet seems to go against the best practices, no?
2 comments

He said it was not most of his bitcoins.

https://twitter.com/LukeDashjr/status/1609618498027753472

EDIT: Right, maybe it's all

First he said "at least many of my bitcoins stolen" and then followed up with "Nevermind many. It's basically all gone"

Which implies that it is indeed most of his bitcoins.

irreversible transactions are a feature!
What is hot wallet, btw?
This is my personal view on the topic. I don't claim it strictly matches any "official" definition.

A "hot" wallet is a type of wallet that's typically stored in internal storage of a network-connected device, such as your personal computer or your smartphone. This is riskier way of storing funds because they can be exfiltrated by malware. You would typically use a hot wallet for day to day transactions.

A "cold" wallet is a type of wallet where private keys to control the funds are never in contact with a network-connected device. They're typically stored in the form of recovery phrases written on paper or metal (in a secure location), or some kind of a smart card that securely stores private keys and exposes an interface to sign individual transactions (e.g. Ledger devices). Funds stored in a cold wallet are much harder to access, but are extremely (or completely) resistant to theft, short of physical access.

In crypto a "hot" wallet should be treated as cash, while a "cold" wallet is more like a savings account.

I don't know if it has a concrete definition but I generally say it to mean a crypto wallet that is directly or indirectly exposed to the internet.

It's possible to create a bitcoin wallet completely offline in a secure environment. The details to the wallet are then stored physically in a secure location/medium. This is called a cold wallet. People typically use a cold wallet for long-term storage of coins.