Hot Wallet
Our process is simple
To use 6 Degrees’ Ai at its optimum level you will need to make use of a Cryptocurrency Hot Wallet and a Cryptocurrency Cold Wallet. Unlike traditional currencies, there are no dedicated banks or physical wallets that can be used to keep cryptocurrency holdings secure. Cryptocurrency wallets are tools that are commonly used to store and protect these holdings, and they come in many different forms and varieties.
Hot Wallet - for those who are unsure let's define what we mean
One of the most popular kinds of cryptocurrency wallets is called a hot wallet. The difference between a hot wallet and a cold wallet is that hot wallets are connected to the internet, while cold wallets are not. There are different reasons why an investor might want their cryptocurrency holdings to be either connected to or disconnected from the Internet.
Because of this, it's not uncommon for cryptocurrency holders to have multiple cryptocurrency wallets, including both hot and cold wallets.
The biggest advantage of holding cryptocurrency in a hot wallet is that it can be used to help facilitate basic transactions. Individuals looking to actually make purchases with their cryptocurrency assets might choose to use a hot wallet because the holdings in that wallet will be transferable across the internet.
On the other hand, hot wallets are more likely than cold wallet techniques to face security issues or potentially be hacked. However, a hot wallet is not an unsafe way to store your cryptocurrency. Rather, compared to a cold wallet method that is entirely removed from the Internet ecosystem, a hot wallet presents more risk to the holder because it can access (and theoretically be accessed by) other parts of the Internet.
How a Hot Wallet Works
After an investor decides to buy or mine digital currency, they must then determine where and how to store their tokens. Although they are called wallets, the name is somewhat misleading because hot wallets don't actually store cryptocurrency in the way that traditional wallets store currency. The role of hot wallets is to help facilitate any changes to the record of transactions stored on the decentralized blockchain ledger for whatever cryptocurrency is being used.
For the cryptocurrency investor, the cryptographic public keys and private keys are the most important elements of a cryptocurrency wallet. Public keys are similar to account usernames; they identify the wallet so that the user can receive tokens without revealing their identity. Private keys are similar to pin numbers; they allow the user to access the wallet and check balances, initiate transactions, and more. Without either of these keys, the wallet is effectively useless.
Security and Hot Wallets
The safety and security of a hot wallet are largely dependent upon the user's behavior. Any items stored in a hot wallet are vulnerable to attack because the public and private keys are stored on the Internet.
Experienced cryptocurrency investors will only keep a small portion of their holdings in their hot wallet because it's less likely that a hacker will break into a hot wallet for a small number of tokens. For example, they may only keep the amount they plan to spend in the near future in their hot wallet. Their remaining assets will stay in Cold Wallet until they are needed for specific transactions.
6 Degrees and Hot Wallets
6 Degrees will provide you with a secure hot wallet. This wallet will have been set up for you to receive and send your BTC directly to the 6 Degree AI. Once your trading is complete, we recommend that you transfer your BTC from your Hot Wallet to your Cold Wallet for secure offline storage. We do not provide Hot Wallet Services where you can store your BTC on our servers. After the Robot has completed the transaction then the Robot will forward the BTC to your Cold Wallet. Should you wish, there are a number of Cryptocurrency & Fiat custodial partners that we can recommend to you.
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