The main difference is that hot wallets are connected to the internet, and cold wallets are hardware-based, offline cryptocurrency wallets. Both serve a purpose and have their pros and cons; however, hot wallets are generally easier to use and more convenient, while cold wallets offer better security for long-term storage.

What Are Hot Wallets in Crypto Casinos?

Hot Wallets

In crypto casinos, many players use hot wallets to deposit and withdraw. Hot wallets can be custodial or non-custodial wallets.

Here are some examples:

Metamask: A popular self-custody option, as you can use a web browser extension to manage your wallet. Alternatives to Metamask include Rabby Wallet, Binance Web3 Wallet, and Phantom, which are also managed using web browser extensions.
Trust Wallet: Another popular hot wallet that uses the self-custody option. However, it is different from Metamask because it is an app-based platform. You can install the app onto your mobile device and use a pin code to access your crypto balances.
Binance Wallet: The exchange provides a custodial hot wallet. You can log on via a web browser or install the Binance mobile app.

What Are Cold Wallets and Why Are They Safer?

Cold Wallets

Cold wallets (like Ledger or Trezor) store your private keys offline. That means hackers can’t access them unless they physically get hold of the device. They’re ideal for holding big wins or your long-term crypto savings, but not ideal for making regular transactions.

Hot Wallets vs Cold Wallets – Which One Should You Use

While hot wallets are the most widely used, affordable and convenient for frequent transactions, they can be exposed to online threats like phishing or malware. Conversely, cold wallets are not exposed to these threats.

Custodial vs Non-Custodial Wallets in Casinos

Choosing a self-custody wallet means you manage the private key/seed phrase. Conversely, custodial wallets store private keys on your behalf.

Best Combination for Crypto Casino Players

Ideally, using a combination of both types is a good idea. Keep your main holdings in a cold wallet, and then use any funds you wish to access regularly in hot wallets. Whether you use hot wallets, cold wallets, or both, always prioritize security when gambling in crypto casinos. Learn more in our complete wallet setup guide.